Colombia, Vietnam Coffee Crop Cut on Costly Inputs: hEDGEpoint
By Marvin G. Perez and Tarso Veloso
(Bloomberg) --
Colombian production in 2022-23 seen at 13.2m bags compared with 13.6m bags projected previously, mainly due to tight fertilizer supply and high costs, according to hEDGEpoint Global Markets.
Prices for urea, a key fertilizer used by Colombian growers, has more than tripled and will likely affect farmer investments, analyst Natalia Gandolphi says in report
Vietnamese production will also be affected by expensive inputs as well, with the coming crop at 31.7m bags compared with prior est. of 31.9m bags
For Honduras, the top shipper in Central America, the crop was also reduced to 6.3m bags from 6.7m bags, Gandolphi says, citing below average rainfall
The reductions are expected to support coffee prices
Final crop number can still change ‘drastically’ as there are still two key months to go for the Vietnamese and Honduran crop to develop, and six months for Colombia’s smaller crop, known as mitaca, report says
NOTE: Bag weighs 60 kg, or 132 lbs; hEDGEpoint’s estimates for Colombian, Honduran and Vietnamese outputare higher than USDA’s