Coffee prices today (July 4) in the world market increased. Accordingly, the price of robusta coffee increased by 1.89% to 2,538 USD/ton.
Update world coffee prices
According to records, coffee prices on the world market increased. Specifically, the online price of robusta coffee in London for delivery in September 2023 was recorded at 2,538 USD/ton after increasing by 1.89% (equivalent to 47 USD).
The price of Arabica coffee for September 2023 delivery in New York was at 160.5 US cents/pound after increasing 0.94% (equivalent to 1.5 US cents) at the time of survey at 7:00 a.m. (Vietnam time).
Photo: Anh Thu
Coffee production across Nicaragua is expected to remain relatively stable in 2023-2024 compared to the previous year, according to Daily Coffee News.
While fertilizer costs have dropped, giving farmers some relief after record high input prices due to COVID-19-related disruptions as well as Russia’s war in Ukraine – climate shocks, lack of institutional support and worker migration remain threats to Nicaragua’s coffee production.
In a report, the USDA’s Foreign Agricultural Service (FAS) projected Nicaragua’s arabica production to remain at approximately 2.46 million 60-kg bags, reflecting suboptimal fertilizer use in the coming years. The estimate could fluctuate based on El Nino conditions in the second half of 2023.
“In addition to El Niño, climate change is a growing concern for the Nicaraguan coffee industry, as extreme weather events become more frequent and severe,” the report states.
The availability of coffee harvesting labor is also expected to be a key factor in Nicaragua's output next year.
“Outward migration remains well above historical levels – an estimated 200,000 Nicaraguans, or 4% of the population, fled in 2022 – as political conditions continue to deteriorate in Nicaragua,” the report also noted. “Producer organizations have expressed concern that insufficient labor supply could reduce the quality and quantity of MY 2023-2024 harvests.”
Despite such challenges, Nicaragua maintains a strong international reputation for high-quality Arabica coffee, achieving market prices in 2022-23 of $30 to $50 per 60kg bag above global commodity prices.
“Exporters indicated that sustained prices above $180/60kg bag in 2023 – the average price for Nicaraguan coffee in April 2023 – could support improved farm management (mainly increased fertilization) and push production back to above 2.7 million 60kg bags in MY 2023-2025,” the report stated.
Notably, the FAS report reported an “uncertain” business environment in Nicaragua due to ongoing political unrest.
“On March 7, the Nicaraguan government revoked the legal status of the High Council for the Private Sector (COSEP) along with 19 individual industry associations, including the Nicaraguan Coffee Exporters Association (EXCAN), which will hinder the ability of coffee exporters to cooperate and advocate as an industry.
Nicaragua lacks a comprehensive national coffee development strategy, and independent analysts note that the loss of EXCAN is due to fewer institutional pillars supporting an industry with significant growth potential across a wider range of production sectors.”
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