Global markets are adjusting upwards.

Coffee prices on the world market increased today (June 27). Specifically, robusta coffee prices rose by 1.27% to $2,710 per ton.

World coffee price update

According to reports, coffee prices on the world market have increased. Specifically, the online price of robusta coffee in London for July 2023 delivery was recorded at $2,710 per ton after a 1.27% increase (equivalent to $34).

Arabica coffee futures for July 2023 delivery in New York were at 165.15 US cents per pound, up 0.18% (equivalent to 0.3 US cents) at 6:45 AM (Vietnam time).

According to analysts, the Brazilian coffee industry, the world's second-largest coffee consumer after the United States, may change its blending practices in the 2023-2024 crop year to increase the use of lighter arabica beans and reduce the amount of stricter robusta coffee due to price increases.

Brazilian arabica coffee consumption could double in the 2023-2024 season compared to the previous season, reaching 6.6 million 60kg bags, while robusta coffee demand will decrease from 18.7 million bags to 15.5 million bags, according to forecasts from broker and analyst hEDGEpoint Global Markets.

Natalia Gandolphi, coffee analyst at hEDGEpoint, said: “Arabica usage is doubling, but will still remain below average, given that the historically high proportion of arabica in Brazilian roasted and ground coffees has changed in recent years as robusta availability has increased domestically.”

She added that, previously, the blending ratio was basically 50%-50% for arabica and robusta coffee, according to ESM.

Blend changes have also occurred in other markets over the past two years as industries increased their use of robusta coffee to avoid the surge in arabica prices following frost and drought in Brazil.

Customs data compiled by Rabobank shows that in the EU and UK, robusta coffee imports accounted for 36.3% of total imports in the 12 months to March, compared to 31.5% in the previous year.

The share of Robusta coffee imports in Japan's total coffee imports, another major coffee market, increased from 29.5% in the 12 months to March 2020 to 36.2% in the year to March this year.

Gil Barabach, a coffee analyst at the consulting firm Safras & Mercado, says that Brazilian roasters will be looking for lower-quality arabica, as the volume of that grade is likely to be higher this season due to rain during the harvest.

Source