NEW YORK: Coffee exports increased by 6.5% in the first two months of the 2020-21 season, when compared to similar period a year earlier, the International Coffee Organization (ICO) said in a report on Wednesday.
Exporting countries shipped 20.2 million 60-kg bags considering combined volumes for October and November versus 18.9 million bags in that period a year earlier, the ICO said.
The main factor behind the increase was a jump in exports from Brazil, which harvested a record crop in 2020. Shipments of Brazilian Naturals jumped 23% in the period to 8.3 million bags.
Exports of Colombian Milds decreased 4.5% in the first two months of the 2020-21 season, while exports of other mild arabicas decreased 5%. Exports of robustas fell 1% in that period.
There are contrasting views in the market regarding global coffee demand in times of the coronavirus pandemic. Some analysts believe consumption has fallen despite an increase in home use.
Part of the larger exports seen by the ICO could be sitting in warehouses at consuming countries, as some traders took advantage of large production in Brazil to stockpile.
The ICO kept its view for the global supply and demand balance unchanged in the last report at a surplus of 961,000 bags for 2019-20, which is less than the 2.26 million-bag surplus seen a year earlier. The organization has yet to release an estimate for the 2020-21 season.