Concerns about supply shortages continue to support the bullish market…
At the end of the first trading session of the week, Robusta coffee prices on the ICE Europe – London exchange reversed to increase. January delivery futures increased by 82 USD, to 2,503 USD/ton and March delivery futures increased by 61 USD, to 2,436 USD/ton, strong increases. Trading volume is quite above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. December delivery futures increased by 4.15 cents, to 178.65 cents/lb and March delivery futures increased by 2.65 cents, to 173.20 cents/lb, very significant increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 1,100 – 1,200 VND, fluctuating in the range of 58,700 – 59,400 VND/kg.
The two coffee futures exchanges started cautiously, hesitantly with speculations that the Fed was ready to raise interest rates if the US economic growth index reports were not as expected. Only when the hot weather forecast in the main coffee growing regions in southern Brazil has supported concerns about the next crop’s output being negatively affected by excessive heat, despite consecutive rains. Since mid-October, it has supported coffee trees to bloom well, causing funds and speculation to return to buying to compensate for short-sold contracts.
Moody’s downgraded the US credit rating to level “negative” causing DXY to decline again, contributing to the bullish market. In addition, the report that ICE inventories continue to decline sharply also causes roasters in the consumer market to step up the purchase of coffee that has been certified by the two Floors due to its more reasonable price.
The Agricultural Product Supply and Forecasting Company (Conab) in Brazil will conduct the 4th survey of the 2023 crop and the 1st of the 2024 crop, and will publish the survey results on the Company’s website from December 14. , Conab said.
According to data from the Coffee Export Council (Cecafe) Brazil, in the first 10 months of 2023, a total of 30.6 million bags of coffee of all types were exported, down 5.5% over the same period last year. The reason is said to be due to delays at Santos port in recent months when the number of ships leaving the port only reached 76%.
Data reported by ICE – London shows that, as of Monday, November 13, Robusta coffee inventories decreased by 3,380 tons, or down 8.25% compared to a week earlier, registering at 37,510 tons. (equivalent to 563,333 bags, 60 kg bags), mainly coffee originating from Brazil.
English (giacaphe.com)
