Commodidex

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====== Robusta ======

{{tag>commodity agriculture coffee robusta brazil indonesia}}

used in instant coffee and as a blend in espressos

Cocoa’s head-spinning rally has captured much attention this year, but coffee is having a moment too. The cost of robusta, the bean variety used in instant drinks and some espresso blends, recently reached the highest in more than four decades.((Bloomberg))

Indonesia, the third-ranked robusta producer

Vietnam coffee exports continue to benefit from the rise in Robusta coffee prices, primarily due to the supply shortages.((https://archive.ph/1A6d1#selection-1147.384-1147.505))

Robusta coffee prices extended losses for a seventh consecutive session yesterday on prospects of improving weather conditions this week in <wrap hi>major producer Vietnam</wrap>.((https://archive.ph/A7MAB#selection-1173.0-1173.163))

Also supporting prices is high demand for robusta beans. <wrap hi>Typically, a rise in robusta prices encourages a shift toward using more arabica in blends</wrap>, but that isn’t happening at this time, Andrea Illy, chairman of Italian coffee roaster Illycaffe SpA, said Tuesday on Bloomberg Television.((https://archive.ph/pb7PC#selection-1731.0-1735.39))

“Coffee prices for robusta heavy product blends remain at a substantial discount to arabica containing blends and thereby consumers seeking value continue to choose the former for now,” the report said.((https://archive.ph/rvNwm#selection-1703.0-1703.202))

London robusta futures, a global benchmark, have reached a record high, reflecting the mounting pressures on the coffee supply chain.((https://archive.ph/aUoWO#selection-2367.0-2367.133))

===== Brazil =====

Record exports in the prior season from Brazil, the world’s second-largest robusta producer, are offsetting the robusta supply shortfall in Asia, but output from the country is also expected to drop in 2024/25. Severe drought and heat waves last fall reduced crop potential, Volcafe said.((https://archive.ph/rvNwm#selection-1711.0-1711.288))

===== Indonesia =====

Meanwhile, harvests in Indonesia are expected to start this month or the following, marking a “substantial delay from the norm” due to droughts caused by El Nino, according to a Friday report from the US Department of Agriculture.((https://archive.ph/pb7PC#selection-1769.0-1773.39)) ((May 2024))

Better weather is expected to support a recovery in output next season for Indonesia, the world’s fourth-biggest coffee producer, which primarily grows the robusta variety. Production is seen rising 14% to about 10 million bags in 2024, the Association of Indonesian Coffee Exporters and Industries said Monday.((https://archive.ph/pb7PC#selection-1783.0-1789.109))