Friday Edtion

MARKET

Brazil Index

Brazil – Producers already negotiated 75% of record harvest

At least 75% of the record production of Brazilian coffee has already been traded by producers. This percentage surpassed the 63% average over the last five years using the same period of comparison. Source (PT)

Brazil – Specialty coffee Maria fetches record price at auction

Specialty coffee producer Daterra, elected Most Sustainable in 2015, broke the record for highest price paid at auction for Brazilian coffee. On 22 November 2016, the plantation held its fourth auction for micro and nanolots with one bag from their Maria lot selling for over US$7,900. Source (PT)

Coffee futures steady

March New York Coffee is trading at 139.35, up 0.25 cents/lb. May New York Coffee is trading at 141.60, up 0.25 cents/lb. New York Coffee futures are trading steady to higher after 22 December 2016 decline. Source

Inflation fears to spur fund demand for commodities in 2017

Speculators – including 5,000 Chinese hedge funds trading in commodities – are poised to extend into 2017 their greater interest in raw material markets, Sucden Financial said, foreseeing hopes of revival in coffee prices. “Strong demand which supported the market throughout 2016 is set to continue into the coming year,” Sucden said, if adding that prices will soften “towards the second half of 2017” as production recovers and eases supply “tension”. Source

Venezuela publishes new coffee prices

Green coffee to producers – Washed A, Grade 3: US$11.06 per quintal. Washed B, Grade 4: $7.74 per quintal. Washed C, Grade 5: $5.53 per quintal. Source (ES)

PRODUCTION

Brazil – Conab estimates 51.3m bags in 2016

Brazil’s Agricultural agency Conab reported that Brazil’s total coffee production is estimated to be 51.3 million bags versus the agency’s previous estimate of 49.6 million bags. Arabica coffee was estimated at 43.3 million bags versus the previous estimate of 41.2 million bags and Robusta was estimated at 7.9 million bags versus the previous estimate of 8.3 million. Source (PT)

Brazil – Study shows coffee tree densification increases coffee production

Research spanning 13 years shows densification of coffee trees elevates productivity by up to 18%. The study was performed in the Northeast of Rio de Janeiro, which is the largest producer in the state, with yearly production average of 260,000 bags. Source (PT)

India cuts coffee output estimate on poor monsoon rains

India is likely to produce 316,700 tonnes of coffee in 2016/17, down 1% from an earlier estimate, as production of arabica has been revised downward due to poor monsoon rains. Source

Philippines – Benguet Arabica added to endangered food list

As its number of trees dwindles, the coffee variety Benguet Arabica has been included in an international food listing meant to protect “endangered” and nearly extinct products. The coffee variety made its way to Slow Food’s Ark of Taste, a program that raises awareness about small-scale food productions and then urges people to protect them by either consuming them or helping their producers. Source

GOVERNMENT / CORPORATE

France – FFP and Jab Holding invests US$50 million into Jab investment vehicle

FFP co-invests $50 million into coffee industry, alongside Jab Holding, in Jab CF Global Consumer Brand, Jab Holding company’s co-investment vehicle. Source (FR)

Israel – Strauss Coffee to acquire Norddeutsche Kaffeewerke

Strauss Coffee to pay US$33.4 million for Norddeutsche Kaffeewerke and waive a loan of $18.7 million. The German company produces freeze dried instant coffee in the factory that it owns, mainly for Strauss Coffee’s subsidiary in Russia and other countries that were in the former Soviet Union. Source

Venezuela – Fedeagro disapproves of new coffee, sugar and corn prices, saying they will bankrupt the Venezuelan producer. Source (ES)

INTEREST

US – Peet’s introduces ‘Slow Bar’ at new DC store amid doubled sales

Peet’s Coffee opens Georgetown location with a “slow bar.” If the test site proves successful, the company to incorporate features into future stores. Peet doubled its sales in the last four years, from around US$400 million to $800 million. To accommodate this growth, Peet’s will open an East Coast roastery in Suffolk, Virginia. The new facility will break ground in 2017 with a 2018 opening. Source



SOURCE

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