**Coffee Market Update – March 6, 2023**
On March 6, arabica coffee prices rose by 1.23%, closing at a new three-week high, while robusta coffee prices fell marginally by 0.03%. Notably, Brazil’s Minas Gerais region received 14.9 mm of rain last week, only 35% of its historical average, which may impact future supply.
Brazil’s coffee exports for February 2023 decreased by 17.4% year-on-year to 142,000 metric tons, contributing to ongoing market volatility. In contrast, Vietnam’s coffee exports grew by 14% year-on-year for January-February 2023, reaching 366,000 metric tons, which may exert downward pressure on robusta prices.
Current ICE-monitored arabica coffee inventories have recovered to a five-month high of 553,379 bags after hitting a 1.75-year low. The USDA projects world coffee production could rise by 2% for the 2025/26 season, reaching a record 178.848 million bags, amidst varied forecasts for Brazil and Vietnam’s outputs.
