Search Results for: Conab
Brazil's 2024 coffee production is expected to reach 58.08 million bags, up 5.5% year-on-year, sending a positive signal to the global market.
The latest report from Brazil's National Supply Company (Conab) shows that Brazil's coffee harvest in 2024 is a bumper year, with total production expected to reach 58.08 million bags, an increase of 5.5% compared to 2023. After the low-yield period caused by weather from 2021 to 2022, productivity began to recover in 2023, and the planted area increased to 2.25 million hectares in 2024. Yields for both Arabica and Conilon (Brazilian Robusta) increased, with the national average yield at 30.3 bags per hectare. Among the main producing states, Espírito Santo saw significant growth, while Minas Gerais experienced steady to slightly higher production. With global coffee demand currently strong and shipping issues driving up prices, this increased-production report is expected to inject confidence into the market. Front Street Coffee continues to follow developments in the producing regions and bring first-hand information to enthusiasts. [more…]
Brazil's 2026 Coffee Crop Hits a Record 67.6 Million Bags, Up 19.6% - Why Bean Prices Are Unlikely to Fall Sharply
Brazil's national supply company Conab expects the country's 2026 coffee crop to reach 67.6 million [more…]
Brazil Fires Cause 14.7 Billion Reais in Agricultural Losses; New Coffee Crop Expected to Fall 6.8%
Brazil has recently suffered severe fires and a historic drought, with agribusiness losses reaching 14.7 billion reais, and coffee-growing regions have also been affected. According to estimates by the Brazilian Confederation of Agriculture and Livestock, the fires from June to August caused enormous economic losses, with São Paulo state hit hardest. At the same time, Brazil is experiencing an extreme drought, with more than a thousand cities going months without significant rainfall, many rivers shrinking, and coffee tree growth severely affected. The official agency Conab has already lowered its forecast for 2024/25 coffee production, expecting a reduction of 4 million bags, a decline of 6.8%. If weather conditions do not improve before the end of the year, production may decline further, and coffee prices will remain high. [more…]
São Paulo State, Brazil Hit by Strongest Storm Since 1995, Coffee Industry and Multiple Sectors Suffer Losses of 1.65 Billion Reais
Brazil's São Paulo state recently suffered its strongest storm since 1995, with wind speeds reaching 107.6 kilometers per hour, causing at least 7 deaths, power outages for more than 3.1 million residential and commercial users, and cumulative economic losses of 1.65 billion reais. This extreme weather not only severely damaged local power supply and industrial production, but also directly harmed coffee trees that were in the flowering stage of the new crop season, leading to a decline in coffee production. At the same time, Brazil's largest coffee-producing region, Minas Gerais, continues to face the threat of drought and high temperatures. The official agency Conab has lowered its production forecast, with total output decreasing by about 4 million bags compared with the previous year. This article will provide a detailed review of the impact of this disaster on Brazil's coffee industry and related economic sectors. [more…]
Brazilian coffee stocks fall to historic lows, global supply tightness may continue to intensify
The imbalance between supply and demand in the global coffee market has further intensified, with coffee inventories in Brazil, the largest producing country, having fallen to their lowest level since records began in the 1960s. Although Brazil's total coffee production in 2022/23 grew by 6.7% year-on-year, inventories plummeted by 88% year-on-year, leaving only 540,000 bags. Arabica failed to reach expected output due to drought and frost, while Vietnam's Robusta inventories also halved, tightening supply for both major varieties at the same time. Brazil's low conversion rate of fresh cherries has further exacerbated the shortage, and coffee prices face sustained upward pressure. This article will review the latest data and the underlying causes, and includes professional recommendations from Front Street Coffee. [more…]
Arabica futures break through 273 cents to a ten-year peak, as extreme weather in Brazil continues to push coffee prices higher
The global coffee market is currently enduring a rare price storm. Driven by climate factors such as prolonged drought, high temperatures, and uneven rainfall distribution in Brazil, combined with steadily rising global coffee demand, both Arabica and Robusta coffee futures prices have hit record highs. Arabica futures have reached 273.4 cents per pound, a ten-year high; Robusta's surge has been even more ferocious, with an increase of 74% within the year. As the world's largest coffee producer, Brazil's domestic retail coffee prices have risen to their highest level since records began in 1997. This article will examine the climate, production, and market factors behind this round of coffee price increases, and look ahead to the prospects for the next harvest season. [more…]
ICO January Report: Coffee Prices Fluctuate Amid Multiple Uncertainties, Robusta Hits 30-Year High
The latest monthly report from the International Coffee Organization (ICO) shows that the composite indicator price for coffee stood at 176.41 US cents per pound in January, edging up 0.4% month-on-month, but the overall trend has continued to fluctuate amid multiple disruptive factors. Robusta coffee prices surged to their highest level since November 1994, with tight supply in Vietnam and a wave of contract renegotiations further intensifying pressure on global supply. At the same time, the Red Sea crisis has driven up transport costs, and coffee inventories on the US ICE exchange have fallen to historic lows. Although Brazil's producing regions suffered drought, some institutions still raised their production forecasts, and with bullish and bearish factors intertwined, the outlook for the coffee market is full of uncertainty. [more…]
Vietnamese coffee prices hit a new historic high, reshaping the global Robusta supply landscape.
Although coffee prices have recently retreated slightly from their highs, insufficient rainfall in Brazil's producing regions and continuously soaring domestic prices in Vietnam have cast a dark cloud over the supply side of the global coffee market. A combination of factors—Vietnamese coffee farmers holding back sales, traders struggling to fulfill contracts, and disruptions to Red Sea shipping—has pushed robusta coffee prices to a new record high. Meanwhile, Brazil's robusta exports have surged, and production expectations for the new crop season are optimistic, which may bring a glimmer of hope to the tight market supply. This article will sort through the key data and events behind coffee price fluctuations and assess the market outlook. [more…]
Coffee futures break through 300 cents to a 13-year high, with Brazilian drought and tight inventories as the main drivers
Recently, U.S. C-type coffee futures prices have been climbing steadily, breaking through the 300 cents per pound mark, touching an intraday high of 303.93 cents, and finally closing at 302.92 cents, setting a new 13-year record and simultaneously driving Robusta coffee futures higher. The core driver of this rally comes from the USDA Foreign Agricultural Service (FAS) sharply lowering its forecast for Brazil's 2024/25 production to 66.4 million bags, a 5% reduction from the previous USDA estimate of 69.9 million bags. Combined with multiple factors including Brazil experiencing its worst drought since 1981 and inventories shrinking 26% year-on-year, market concerns over global coffee supply continue to intensify. Producing countries such as Honduras have also seen reduced output due to adverse weather, further exacerbating the tight supply situation. [more…]
Coffee Stocks in Crisis: ICE Exchange Plans to Re-certify Two-Year-Old Brazilian Beans for Market Release
Brazil, the world's largest coffee producer, has suffered consecutive droughts and frosts, with its 2022/23 harvest falling far short of expectations. Certified coffee inventories on the ICE exchange have continued to decline, keeping coffee futures prices elevated. To ease the inventory crunch, ICE plans to re-grade and re-certify a batch of Brazilian Arabica old-crop beans that have been in storage for nearly two years and put them into trading. Although this move is not a violation of the rules, it has sparked concerns among traders about coffee quality and the mixing of old and new beans. This article will review the background of Brazil's reduced output, the logic behind futures price fluctuations, and the possible chain reactions that re-certifying old-crop beans may bring to the market. [more…]
Brazil Hit by Twin Blows of Fire and Drought: Coffee Season Delayed to 2027, Exports Disrupted, Prices Poised to Rise
The Brazilian coffee industry is facing a dual shock from drought and fires. Since the end of August, fires have continued to spread across various regions, burning large swaths of coffee plantations and forcing producers to replant, delaying the originally planned 2025 harvest to 2027. Meanwhile, the worst drought on record has swept across the country, and falling water levels in Amazonian rivers have caused congestion at southern ports, where about 1.2 million bags of coffee have piled up and been damaged, with losses reaching as high as US$300 million. Smoke has covered nearly 5 million square kilometers, affecting at least 10 states. In view of multiple factors such as fires, worsening air quality and port delays, coffee exports are expected to decline and prices will continue to rise. [more…]
Brazil Cerrado Coffee Bean Flavor Characteristics and Variety Origins: A Full Analysis from Seed Introduction to Grading System
Brazil has held the top spot in global coffee production since the 1960s. Even after a century of droughts and frosts, its total production in 2021 still reached 46.88 million bags. This coffee powerhouse, now so influential, had not a single coffee tree three hundred years ago. How did coffee seeds reach Brazil? And what flavor profile does the Red Bourbon of the Cerrado region offer? This article systematically covers the core knowledge of Brazilian coffee, from historical origins, grading systems, and producing regions to brewing parameters, and introduces the Cerrado Red Bourbon, a representative of Brazil's classic flavors in Front Street Coffee's everyday bean series. [more…]
A Comprehensive Guide to the Brazilian Cerrado Coffee Bean Grading System, Pour-Over Parameters, and Flavor Characteristics
As the world's largest coffee-producing country, Brazil has a coffee bean grading system that is completely different from common systems like Kenya AA or Yirgacheffe G1. What exactly do the markings NY.2 SC-17/18 FC on the burlap sacks represent? Why has the Cerrado region become a classic representative of Brazilian specialty coffee? From the perspective of Front Street, this article traces the historical development of Brazilian coffee, its producing regions, and the logic behind green bean grading, and provides a detailed introduction to the brewing method and flavor profile of the Brazilian Red Bourbon semi-washed beans in Front Street's everyday drinking bean series, offering a systematic understanding of the unique charm of this major South American coffee nation. [more…]