Brazil coffee exports soar in May, while price per bag sinks

SAO PAULO: Brazilian coffee exporters shipped 3.19 million 60-kg bags of green coffee in May, 114% more than in the same month a year earlier, as large local supplies allow for continuing growth in monthly exporting volumes.

The average price per bag exported by the world's largest producer, however, was the lowest for May since at least 2015 as global coffee prices remains historically low, according to a monthly report released on Monday by coffee exporters association Cecafé.

Brazil exported 2.82 million bags of arabica beans in May, 95% more than in May last year, while shipments of robusta coffee jumped more than 700% to 376,257 bags.

Cecafé said the average price per bag shipped in May was $118, sharply lower than the $152 per bag seen in May last year and far below the peak of $170 seen in 2017.

Cecafé's president, Nelson Carvalhaes, said the moment is very positive despite lower prices.

"Growth in volumes for the main destinations, as well as the increase in the high-quality segment, reinforces the upward trend for Brazil in its share of the global market," Carvalhaes said in the report.

The United States was the leading destination for Brazilian coffee in May, followed by Germany and Italy.

Brazil also saw a rise in instant coffee exports, which reached the equivalent to 326,172 bags, 35% more than in May last year.