CropGPT - Coffee - Week 19
Manage episode 482926016 series 3663199
This episode presents a detailed overview of the global coffee market for the week ending May 11, 2025, with focused analysis on pricing dynamics, export volumes, and production trends across key producing regions including Colombia, Brazil, Uganda, and India.
- Colombia: The National Federation of Coffee Growers continues to set a guaranteed daily base price, calculated using the New York Stock Exchange's closing figures, prevailing exchange rates, and premiums for Colombian coffee. On the reporting day, the external contract closed at USD 387.35/lb, and the domestic reference price was COP 3,185,000 per 125 kg of dry parchment. Pricing remains influenced by coffee quality, particularly the share of pasilla (unsalable beans), and varies regionally between cities like Armenia and Bogotá.
- Brazil: Green coffee exports in April 2025 declined by 31.9% year-over-year to 886,250 bags. Despite this, total coffee production for the 2025 calendar year is projected to rise 2.7%, potentially reaching 55.7 million bags. However, challenges persist due to unfavorable weather in Minas Gerais and increased production costs, especially for Arabica growers. In response, investments are being made in crop protection and technological upgrades to sustain output.
- Uganda: The country recorded exceptional growth in coffee exports, with March 2025 volumes up 92.19% year-over-year, totaling 642,981 bags. Robusta led the surge with a 111.39% increase, boosting export revenues by 202.52% to USD 198.62 million. This performance underscores Uganda’s growing role in the global Robusta supply chain.
- India: Coffee agroforestry in the Western Ghats is gaining attention for its dual role in supporting coffee cultivation and ecological restoration. New research highlights the potential of native tree species within coffee farms to contribute to forest regeneration, supporting both biodiversity and sustainable agriculture.
Global Market Perspective: The coffee sector remains highly dynamic, shaped by diverse factors including quality control mechanisms, weather-related production risks, regional policy developments, and sustainability initiatives. As pricing and supply conditions fluctuate, producers and traders must navigate a complex, multi-regional landscape with evolving risks and opportunities.
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