Episode Summary: Global Coffee Market Highlights for September 1, 2024
- Colombia: The Coffee Growers Federation (FNC) has launched a price guarantee for farmers, accounting for global rates, exchange rates, and quality premiums. Region-specific pricing and defect penalties aim to maintain coffee quality. Excessive rainfall continues to challenge production, but the FNC is focused on risk mitigation.
- Brazil: Severe drought during the Arabica flowering period threatens 2024/25 yields. The weaker Brazilian real is adding market instability, though coffee exports have risen due to supply shortages elsewhere. EU regulations on deforestation-free products highlight Brazil's export strength, but dry conditions remain a concern.
- Vietnam: Facing significant production declines due to drought and El Niño, impacting both yield and quality for the 2023/24 crop year. Robust prices have increased globally, but adverse weather could weaken Vietnam's market competitiveness.
- Indonesia: Heavy rainfall is reducing coffee yield and quality for the 2024/25 season. The country's role in the robusta market remains strong but under pressure as global demand for high-quality coffee rises.
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