International coffee prices hit 16-month low on weak demand
Coffee and sugar prices declined quite sharply. International coffee prices trading at 16-month lows. Prices declined by 26 percent in the previous year and this year has started on a weaker note because the Brazil weather has improved, the supplies have increased and with Brazilian Real weakening has seen the coffee prices go down.
Coffee and sugar prices declined quite sharply. International coffee prices trading at 16-month lows. Prices declined by 26 percent in the previous year and this year has started on a weaker note because the Brazil weather has improved, the supplies have increased and with Brazilian Real weakening has seen the coffee prices go down.
Also, ICE Arabica inventories have risen to 5.5-month highs. December inventories seen at around 814,000 tonne, in November it was just about 382,000 tonne. So, a lot of material have come into the exchanges because there are no buyers or takers in the open market and that is showing the trend.
The markets are looking at weak demand, especially from Europe, good crop prospects, rising inventories, all of that seems to be weighing on prices.
That’s exactly the case in terms of sugar. December saw strong prices; two-year highs in the international markets, but the prices have come down quite strongly.
Meanwhile, coffee shipments from India, Asia's third-largest producer and exporter, rose 1.66 percent to 4 lakh tonne in 2022 on the rise in instant coffee exports and re-exports, according to the Coffee Board. Exports stood at 3.93 lakh tonne in 2021.
In value terms, coffee export was higher at Rs 8,762.47 crore in 2022 as against Rs 6,984.67 crore in the previous year.
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