What does the February coffee beans production data show?

Brazil shipped 3.626 million bags of coffee in February 2024, up 48.9% from 2.435 million bags a year earlier, even as vessels waited at ports such as Santos. Export revenue for the month rose 47.2%, and first-quarter shipments for January and February reached 7.654 million bags, 44.9% higher than 2023.

Arabica coffee led with 6.076 million bags in the two months, 79.38% of the total and up 35% year on year. Robusta exports hit 1.031 million bags, up 531.4%, with a record February. Brazilian robusta traded near US$2,876 per ton against US$3,450 for Vietnamese coffee, and China's imports rose 158.8%.

The latest report from the Brazil Coffee Exporters Council shows that although major ports such as Santos are still troubled by vessel delays, Brazil's coffee exports in February achieved a year-on-year increase of nearly 50%, with robusta coffee even hitting a historic high. Cumulative shipments in the first two months grew by more than 40%, with foreign exchange revenue rising in tandem. At the same time, China, as an emerging partner, saw its imports surge 158.8%, providing new possibilities for Brazil's future coffee supply. This article will review the export data, the current port situation, and key changes in the international competitive landscape.

The Brazil Coffee Exporters Council (CECAFÉ) recently released a report stating that although the delay rate for cargo ships loaded with coffee at ports remains high, Brazil's coffee exports in February still climbed 49% compared with the same period last year, demonstrating the continued growing appeal of Brazilian coffee in the global market.

In February 2024, Brazil's total coffee shipments reached 3.626 million bags (60 kg per bag), an increase of 48.9% compared with 2.435 million bags in the same period last year. Driven by this, foreign exchange revenue for the month was also 47.2% higher than the same period last year. Looking at the first two months of 2024 as a whole, Brazil's total shipments of all types of coffee reached 7.654 million bags, an increase of 44.9%, with export revenue of US$1.574 billion, up 39.3% from the same period in 2023.

From the perspective of variety structure, arabica coffee had the largest export volume in January and February this year, reaching 6.076 million bags, accounting for 79.38% of the total and increasing 35% year on year. Robusta coffee exports totaled 1.031 million bags, surging 531.4% compared with the same period last year.

The president of CECAFÉ pointed out that robusta coffee exports in February set a new historical record and broke the shipment peak of the previous two months. This performance reflects the competitiveness of Brazilian coffee in the international market. Recently, the domestic trading price of Brazilian robusta coffee was US$2,876 per ton, while Vietnamese coffee was priced at US$3,450 per ton. Brazilian robusta is clearly more price-competitive than its rivals, while also filling the gap left by declining robusta production in Vietnam and Indonesia. As for the disruption to shipping caused by the geopolitical conflict triggered by the Red Sea crisis, no notice has yet been received of any substantial impact on Brazilian coffee transport, so export performance in these two months has been positive. However, CECAFÉ said it will continue to monitor the incident, as its impact on the global situation is significant, and continued increases in freight rates as well as port vessel congestion and delays still require vigilance.

At present, the delay rate for coffee vessels at the Port of Santos in February was 75%, involving 75 cargo ships, with the longest berth shift time reaching 22 days. This is an improvement compared with the 85% delay rate in January this year. Earlier, southern Brazil was hit by cyclones and tropical storms, causing vessels to shift from southern ports to other ports. Combined with the short opening hours of the port gates, the Port of Santos became congested for a time. The problem has now eased somewhat, and relevant parties are readjusting their actions to resolve the remaining issues.

Although the United States remains the main buyer of Brazilian coffee, China has become one of Brazil's important partners for coffee. In the first two months of this year, China imported 256,931 bags of coffee, an increase of 158.8% over the same period last year. CECAFÉ said that as long as the port problems are resolved, Brazilian coffee beans can increase supply, thereby easing pressure on market demand.

The above content is compiled by CoffeeHunters, a coffee news website.