Global coffee exports dip 3.4% in January, but rise in first four months of season: ICO

FILE PHOTO: Roasted coffee beans are seen on display at a Juan Valdez store in Bogota, Colombia June 5, 2019. REUTERS/Luisa Gonzalez/File Photo

LONDON (Reuters) - Coffee exports fell by 3.4% in January 2021 versus a year ago, but exports in the first four months of the 2020/21 season (October-September) rose 3.7%, the International Coffee Organisation (ICO) said on Wednesday.

The intergovernmental organisation said exports in the first four months, which totalled 41.9 million bags versus 40.9 million, rose primarily thanks to a 21.9% surge in shipments from top producer Brazil.

Exports from most other regions fell, giving mass mechanised producer Brazil increased market share.

Africa’s exports in the first four months fell by 13%, Asia & Oceania’s exports declined by 3.9%, while exports from Mexico & Central America slumped by 17.5%, as the region was hard hit by hurricanes Eta and Iota.

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 in consuming countries, as some traders took advantage of large production in Brazil to stockpile.

The ICO kept its view for the global coffee supply and demand balance for 2020/21 little changed from its last report at a surplus of 5.27 million bags. Analysts in a recent Reuters poll predicted a large surplus for 2020/21 of 8 million bags.

Editing by Elaine Hardcastle