Harvesting new crops in key producing countries will support increased supply in the short term…
For the whole last week of the year, the London market had 2 holidays and 3 consecutive declines. The price of Robusta coffee for spot delivery in March fell by all 76 USD, or 4.05%, to 1,799 USD/ton and for May delivery fell all 71 USD, or 3.85 %, to 1,774 USD/ton. tons, the levels fell sharply. Trading volume on average.
On the contrary, the New York market had 1 increasing session and 3 decreasing sessions. The price of Arabica coffee for March delivery fell all of 4.70 cents, or 2.73%, to 167.30 cents/lb, and for May delivery fell all of 4.65 cents, or 2. ,71 %, to 166.95 cents/lb, very significant reductions. Trading volume below average.
The price of green coffee beans in the Central Highlands market decreased from 1,300 to 1,400 VND, to range from 39,600 to 40,100 VND/kg.
Highlights of the week are the volume reports of coffee exports from the main producing countries. Specifically, the consultant-analyst Safras & Mercados in Brazil expects December exports to drop 10% year-on-year, to around 3 million bags. The Agricultural Forecasting and Supply Company (Conab) under the Brazilian Ministry of Agriculture has raised its forecast for Brazil’s total coffee production in 2022 to 50.9 million bags, up 6.7% year-on-year. The General Statistics Office of Vietnam estimates that exports for the whole year of 2022 will total 1.72 million tons (about 28.66 million bags), up 10.10% over the previous year. The Indonesian Trade Agency reported exports in the first eight months of the current coffee season (Indonesian crop year April 2022 to March 2023) totaling 3.37 million bags, an increase of 54, 93% over the same period last crop year, accounting for mainly Robusta coffee.
Fears of the global economic recession continue to weigh on speculative sentiment in commodity markets in the first half of 2023, which will lead to a general decline in commodity purchasing power, while information about the outbreak of the COVID-19 epidemic has spread throughout the world. where after China abandoned the policy Zero covid rekindled the general concern of the whole world when the leading consumer economy proved to be tense again.
As of Tuesday, December 27, the inventory of Robusta coffee certified and tracked by the London floor increased by 63,020 tons, up 95.98% from a week earlier, to 129,680 tons registered at 129,680 tons. (equivalent to 2,144,667 bags, 60 kg bags), contributing to downward pressure on both coffee futures exchanges in general.
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- Monday, January 2, markets are closed, compensating for New Year’s Eve 2023.
- Tuesday, January 3, normal trading hours.
English (giacaphe.com)