Robusta coffee prices edged down, the news of heavy supplies from Vietnam, the world’s top grower, outweigh the weak Brazilian exports.
The Brazilian exporters’ association Cecafe reported August robusta exports down 90% year on year, at 39,327 60 kilogramme bags, after London markets closed on Tuesday.
This is a touch above the pace of July, but still represents very low exports from the world’s second ranked robusta grower.
Robusta production in Brazil has been hit by dry weather in Espirito Santo state, the main growing region for the variety.
Overall green coffee exports were down only 7.4% year on year, at 2.40m bags, thanks to rising arabica exports.
But overall coffee exports are up 46% from July, which saw the lowest shipments in over a year.
Nelson Carvalhaes, president of Cecafé, forecast the recovery in exports to continue.
“After a period of the off-season, we will certainly have gradual and sustainable growth going forward,” he said.
Minimal robusta exports
But coffee trader I&M Smith were more downbeat on prospects.
“It is hardly surprising that the Brazil green coffee export levels have dipped, as following this year relatively dismal robusta coffee crop, there are now minimal export volumes of these robusta coffees,” the trader said.
“This factor is likely to continue to depress the overall coffee exports from Brazil in the coming months, comparative to the figures for the same months in the previous year”.
Vietnamese exports beat expectations
The low exports from Brazil were balanced by news of heavy supplies from Vietnam, the world’s top robusta grower, announced on Wednesday.
Vietnam exported 2.54m 60-kg bags (or 152,678 tonnes) of coffee in August, which would be almost exclusively up 9.2 percent from July, the customs department said.
This came in ahead of market expectations for 100,000-120,000 tonnes of exports in August, and official government estimates of 140,000 tonnes.
The August shipments bring Vietnamese coffee exports between the start of the season in October 2015 and now, to 1.61m tonnes, up 33% year on year.
November robusta prices in London were up 0.3%, at $1,938, in early afternoon deals.