
Daily Coffee Report 8/20/26
Daily coffee report

- Coffee
By: Diana Delgado, Contractor

Colombia Urges Coffee Producers to Focus on Value Creation as Market Fundamentals Remain Firm
Bogota (Coffee Network)— Colombia is urging coffee-producing countries to focus on capturing more value across the supply chain rather than relying solely on higher futures prices, as tight inventories, delays to Brazil's harvest and renewed El Niño risks continue to support the market's underlying fundamentals, German Bahamon, general manager of the coffee growers federation FNC said.
Market participants acknowledge that coffee fundamentals remain solid. Global inventories are still low, Brazil's harvest is facing delays, and the return of El Niño is adding uncertainty to prospects for the next production cycle.
However, some analysts are forecasting an additional 5million-10million bags for the current global crop, figures that could appear large enough to alter the market's direction. In the context of global consumption, however, the impact is more limited. With worldwide coffee consumption at around 180 million bags a year, an additional 5 million bags would represent only roughly a week and a half of global demand, Bahamon noted.
Putting these figures into perspective highlights why short-term supply expectations do not necessarily change the market's longer-term fundamentals, he added.
The current market environment should also serve as a call to action for producing countries, which cannot simply wait for higher prices on the futures exchange.
"The real strategy is not to chase the futures price, but to capture a greater share of the value generated by coffee," Bahamon said in an editorial published at the financial newspaper La Republica.
That means increasing processing and industrialization at origin, developing higher-value products, strengthening traceability, building brands, promoting innovation and stimulating coffee consumption. “Each of these steps can help reduce producing countries' exposure to financial market volatility while increasing the share of value that remains in coffee-producing regions.”
"The true value of coffee is not born on the screens of traders and speculators. It is born on the farm, strengthened by industry and multiplied as we move through the entire value chain," he stated.
For Colombia, capturing more value and retaining it at origin will remain a central objective as the coffee sector navigates volatile markets and an increasingly uncertain global production outlook.
By Diana Delgado
Editorial published at La Republica newspaper
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Daily coffee report


August 20 – Stock futures slipped lower overnight amid rising commodity prices and higher Treasury yields. The VIX firmed to trade near 16 at this hour, while the dollar index trades near 98.7 after falling to a fresh three-month low this morning. Yields on 10-year Treasuries are trading near 4.70%, while yields on 2-year Treasuries are trading near 4.20%. WTI crude oil rallied to trade near $88 per barrel, while Brent trades near $94 per barrel. The grain and oilseed sector added to yesterday’s gains in overnight trade as well.


Daily coffee report

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