Market Update , with perspectives for the week of November 29th to December 3rd.
Arabian coffee prices hit 10-year highs on supply flow issues. Concerns about a new Covid-19 variant played a role in a volatile week that caused a sharp drop in the coffee market, with prices in Arabia down 4.09% in one day. Fundamentals continue to support coffee prices, but the angst caused by possible closures and border restrictions has injected uncertainty into the market.
Record freight rates and lack of container availability restricted exports out of Vietnam, Brazil and Indonesia. The European Coffee Federation reported that coffee inventories at major ports fell by 3.2% during the month of November.
Coffee prices continue to be supported by news from Brazil. Cooxupe, the largest producer cooperative in Brazil, reduced its estimate for exports to 4.8 million bags from 6.5 million due to logistical problems and reduced production. Reports from the Brazilian Ministry of Foreign Trade showed that coffee exports in November fell 36.5% compared to the same month last year and 7.3% compared to October.
In this way we will have to be very attentive in the coming weeks.
So we suggest you stock up on Speciality Coffee for the next few weeks before prices go up.