
Daily Coffee Report 8/11/26
Daily coffee report

- Coffee
By: Diana Delgado, Contractor
Coffee Faces Challenges In Marketing Amid Global Lower Output: Colombia’s Exporters Association Asoexport
Bogota (Coffee Network) – In the midst of a historic price for Colombian coffee parchment, with a value greater than COP2.200 million ($446) amid a strong depreciation of the Colombian peso, a differential quality premium for coffee beans and an international context with the war in Ukraine and the forecasts of a generalized recession, the 86th version of the Coffee Summit is being prepared, which will be held in Cartagena on November 3 and 4, 2022.
“This year's event will serve to resolve key concerns such as: the sector's vision for the coming years, high coffee prices and how international conflicts have affected production and labor costs; as well as the challenges of the industry that will set trends in the coming years”, says Gustavo Andrés Gómez Montero, executive director of the Association of Coffee Exporters, Asoexport.
“Today's reality indicates that the rains indicate a trend of lower growth in production; however, the high international prices mark a historic harvest value. Asoexport, as responsible for 72% of the commercialization, contributes to bringing the bonanza produced by international prices to the coffee growing areas of the country”, says the union leader.
Asoexport Gomez said future coffee prices will depend on the behavior of supply and demand, and its future will be determined by what happens with the weather in Brazil (whose production fell by around 20%, almost what our country produces annually) and what happens with the phenomenon of La Niña in Colombia, factors that will influence the behavior of specialty coffees and the international market.
"Colombia comes from three years of rains, an aspect that, added to other factors, has generated a decrease in coffee production, going from levels of 14 to 12 million 60-kilogram bags," said the union leader. This, added to a reverse market situation, unprecedented behavior for years in the stock markets, generates important challenges in the marketing of coffee.
“What we are seeing now is that the position of coffee delivery to December has a better price than that of March of next year, which generates pressure for exporters and marketers; this becomes a call to be cautious in purchases and at the same time take measures not to keep a large number of inventories”, explained Gómez Montero.
It also remains to be seen how the Colombian harvest will behave during the last months of the year. The monthly averages account for a production of 900,000 bags, which corresponds to the normal statistics with a downward trend, with the winds over a possible global economic recession, the doubt arises as to whether or not coffee consumption in the world will decrease. The pandemic has already shown us that coffee consumption has moved from offices to homes, without consumption decreasing, but what will happen if the global economy seriously contracts again is not predictable.
Colombian coffee is no stranger to what is happening with the world economy and the challenge of the Coffee Summit in its 86th version, scheduled for November 3 and 4 in Cartagena, is to analyze these international phenomena and define the roadmap that will mark the course of the sector in the immediate future and in the medium term.
By Diana Delgado
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Daily coffee report


August 11 – It was generally a quiet night for the markets until early this morning when a headline hit that Iran and Oman were close to reaching a deal. Stock futures rallied, while the dollar index followed Treasury yields lower, along with active selling in the energy- and food-based commodities. The headline had limited impact though in a world that has become skeptical of promises of peace. Stock futures remain steady to firmer at this hour, while the VIX trades near 16 – just above 2026 lows. The dollar index is trading near 99.8 this morning, after recovering from its early morning selloff over the following hour of trade. Yields on 10-year Treasuries are trading near 4.69%, while yields on 2-year Treasuries trade near 4.22%. WTI crude oil is trading near $82 per barrel at this hour, while Brent trades near $88. The grain and oilseed markets are mostly weaker, after failing to recover from this morning’s early selloff that started in the crude oil market.


Daily coffee report

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