Transportation difficulties to disruption caused coffee prices to rise, world coffee futures prices fell due to rainfall in coffee-producing areas of Brazil

Transportation disruptions keep coffee prices high

Global coffee shipments disrupted by container shortages and port congestion are likely to keep coffee prices high for longer as the market struggles to balance local supplies, Reuters reported on Oct. 15.

Transport problems are hampering the rapid delivery of existing supplies to meet demand in some parts of the world, pushing up commodity prices, coffee analysts and traders said at the annual meeting organized by the Swiss Coffee Trade Association (SCTA) on Friday.

An executive at Louis Dreyfus, the world's leading agricultural trading and processing company, said that when global coffee supplies were in short supply, inventories were reduced, and high prices could facilitate the transport of available coffee, but none of this has happened now. Coffee prices are at risk of rising, and the market is trying to find some kind of balance, but it hasn't been found yet.

Earlier, on Oct. 12, the day closed at 213.15 cents, the highest close in the past year, while Arabica futures rose to 215.15 cents at one point on the day.

Brazil's exports of raw coffee beans decline

Brazil's exports of raw coffee beans fell 29% in September from a year earlier to 2.74 million bags (60 kg each), Reuters reported on Oct. 13. The reason for the decline in Brazil's exports of raw coffee beans is that the circulation of commodities is hampered by transport difficulties.

The Brazilian Association of Coffee exporters (Cecafe) said that the shipping route had not changed, but it was difficult for exporters to book containers and shipping space, as well as delays in shipment.

Exports from Brazil's arabica fell 24 per cent to 2.42 million bags, while exports from robusta fell 51 per cent to 326045 bags.

Arabica futures prices fell 3% due to rainfall in Brazil

On October 15th, according to Nadak NASDAQ, the price of Arabica futures on the intercontinental exchange fell 3%, due to rain in Brazil's coffee-growing areas, and the coffee harvest is expected to improve next year.

Coffee traders said the cumulative rainfall in Brazil's coffee-growing areas in October was above average, which could boost next year's harvest. Previously, Brazil was expected to have a poor harvest next year because of the double whammy of drought and frost.

A local agent in Brazil said: "with such abundant rainfall, it is agreed that there are more flowers than expected, even in some areas that have experienced frost."

At the annual meeting organized by the Swiss Coffee Trade Association (SCTA), the head of the Louis Dreyfus Coffee platform also said that the situation in Brazil would be better than expected because of the rainfall in the coffee growing region of Brazil.

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