What is robusta, and why are shipments from Vitória climbing?
Brazil's Vitória port shipped more than 844,000 bags of coffee in November, the fourth-highest monthly total in its history, and Robusta shipments set a new monthly record. The volume came mainly from Espírito Santo state, Brazil's largest Robusta-producing region, with the Vitória Coffee Trade Center citing stronger international competitiveness.
Logistics efficiency and growth in certified coffee supply supported the exports. The outlook is less steady: El Niño-driven extreme weather has hit Indonesia and Vietnam, Robusta futures reached their highest level since 2008, soil moisture in Espírito Santo fell to a seven-year low, farmers are holding back sales, and Vietnam's new crop is only now reaching the market.
Brazil's Vitória port delivered impressive coffee export results in November, with monthly shipments exceeding 844,000 bags, setting the fourth-highest monthly record in the port's history, while Robusta coffee in particular set a new all-time monthly export high. This performance was mainly driven by strong supply from Espírito Santo state, Brazil's largest Robusta-producing region. The Vitória Coffee Trade Center believes that the export growth will help enhance the competitiveness of Brazilian Robusta in the international market, while improved logistics efficiency and an increase in certified coffee supply have also supported exports. However, the outlook is not all smooth sailing. Affected by El Niño, major producing countries such as Indonesia and Vietnam have successively experienced extreme weather, and Robusta coffee futures once soared to their highest point since 2008. Soil moisture in Brazil's Espírito Santo state has also dropped to a seven-year low, farmers are reluctant to sell, and future production is difficult to estimate. Vietnam's new-crop Robusta is gradually coming to market, which may bring new variables to the market.
Recently, Brazil released coffee export data for the port of Vitória. In November, the port shipped more than 844,000 bags of coffee (60 kg per bag), ranking fourth in the port's coffee export history, behind only 1 million bags in August 2002, 968,000 bags in September, and 930,000 bags in October.
It is understood that the coffee exported from the port of Vitória is mainly Robusta produced in Espírito Santo state, which is precisely Brazil's largest Robusta-producing region. Data from the Vitória Port Trade Center shows that the Robusta coffee shipped from the port in November pushed Brazil's monthly Robusta export volume to a record high.
The Vitória Coffee Trade Center pointed out that November's outstanding performance is expected to strengthen the competitiveness of Brazilian Robusta coffee in the international market. At the same time, Brazil's logistics efficiency continues to improve, and the supply of coffee certified for quality and sustainability is also increasing.
However, Reuters recently reported that climate concerns over the supply outlook pushed Robusta coffee futures on Wednesday to their highest level since at least January 2008, while Arabica coffee futures also jumped in tandem to a high since July.
After previously hitting a peak of $2,810, Robusta coffee rose another $45, or 1.7%, to $2,669 per metric ton. Arabica coffee, after hitting a peak of $1.9195 per pound, stabilized at $1.8865 per pound, up 3.4 cents, or 1.8%.
But dealers said the high prices are related to reduced output caused by weather factors. Earlier, other large producing countries such as Indonesia and Vietnam also reported weather problems. Affected by El Niño, Indonesia experienced severe drought after flooding, while in Vietnam heavy rain and the rainy season disrupted the coffee harvest.
Brazil has also been significantly affected. According to LSEG's agricultural weather dashboard, soil moisture in Espírito Santo state, Brazil's largest Robusta-producing area, is currently at its lowest level in seven years. Because of this, Brazilian farmers are in no hurry to sell, and deals were concluded at higher prices last week, while production is difficult to estimate due to uncertainty about future weather. Rabobank pointed out that Vietnam's Robusta coffee has now entered the harvest season and will gradually come to market afterward.
The above content is compiled by CoffeeHunters, a coffee news website.
