World markets adjusted up

Coffee prices on the world market increased today (June 27). Of which, robusta coffee prices increased by 1.27% to 2,710 USD/ton.

Update world coffee prices

According to records, coffee prices on the world market increased. Specifically, the online price of robusta coffee in London for delivery in July 2023 was recorded at 2,710 USD/ton after increasing by 1.27% (equivalent to 34 USD).

The price of Arabica coffee for delivery in July 2023 in New York was at 165.15 US cents/pound after increasing 0.18% (equivalent to 0.3 US cents) at the time of survey at 6:45 a.m. (Vietnam time).

Brazil, the world's second-largest coffee consumer after the United States, may change its blend in the 2023-24 crop year to increase the use of mild arabica beans and reduce the amount of stricter robusta due to prices, analysts said.

Consumption of arabica coffee in Brazil could double in 2023-24 from the previous season to 6.6 million 60kg bags, while demand for robusta coffee will fall from 18.7 million bags to 15.5 million bags, according to forecasts from broker and analyst hEDGEpoint Global Markets.

“Arabica use is doubling, but will still be below average,” said Natalia Gandolphi, coffee analyst at hEDGEpoint, referring to the historically high proportion of arabica in Brazilian roasted and ground coffees that has changed over the past few years as robusta availability has increased domestically.

Previously, the blend ratio was basically 50%-50% for arabica and robusta coffee, she added, according to ESM.

Blend changes have also occurred in other markets over the past two years as industries increased their use of robusta to avoid spikes in arabica prices following frost and drought in Brazil.

Customs data compiled by Rabobank shows that in the EU and UK, robusta coffee imports accounted for 36.3% of total imports in the 12 months to March, compared with 31.5% a year earlier.

The share of Robusta coffee imports in total coffee imports by Japan, another major coffee market, increased from 29.5% in the 12 months to March 2020 to 36.2% in the year to March this year.

Brazilian roasters will be looking for lower-quality arabica, as volumes of that grade are likely to be higher this season due to rain during the harvest, said Gil Barabach, coffee analyst at consultancy Safras & Mercado.

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