Colombian coffee premiums firmed in the past week as demand remained strong due to continued lack of availability of washed, mild arabica beans from other origins, as Central American harvests wind down. The average differential for usual good quality beans from No 2 arabica coffee producer Colombia rose back to 18 cents a lb ex dock over September arabica prices on ICE Futures US, up from 17 cents a lb from the prior week.
"The demand for Colombians is good, and is quite strong here on the spot market," said Christian Wolthers, president of green coffee importers Wolthers Douque USA in Fort Lauderdale, Florida. "Whoever has Colombians is selling at a good pace." Traders noted that Colombian beans were still trading at a significant discount to their Central American counterparts, due to a bumper crop in the South American country and as continued damage from leaf rust disease roya limits output in countries including Mexico and Guatemala.
This has prompted several roasters to replace Central American coffees with Colombian beans in their secretive blends. The trend has intensified as the last beans from the Central American harvest from the crop that began in October are sold. "They'll come in looking for a Central, and when we give them the price they just fill in the category with a Colombian," one US importer said.
Elsewhere, the discount for 2/3 fine cup/strictly soft beans from top producer Brazil grew to 5 cents under futures prices from 4 cents under the prior week due to the move higher in the futures market, enabling producers and exporters to offer more aggressive differentials for forward shipment. In No 2 coffee grower Vietnam, premiums for Grade 2 robusta coffee rose to 12 cents a lb over September robusta prices as farmers continued to hold back sale in hopes of higher prices.
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