Coffee futures prices are adjusted as speculators take short-term profits…
At the end of the weekend trading session, Robusta coffee prices on ICE Europe – London floor adjusted down. The January delivery term decreased by 39 USD, to 2,572 USD/ton and the March delivery term decreased by 18 USD, to 2,528 USD/ton, very significant decreases. Trading volume remains well above average.
In contrast, Arabica coffee prices on the ICE US – New York floor have a mixed trend. March delivery futures decreased by 0.35 cents, to 184.35 cents/lb, while May delivery futures increased by 0.95 cents, to 181.70 cents/lb and July delivery futures increased by 1, 40 cents, to 182.10 cents/lb, very significant increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 400 – 500 VND, fluctuating in the range of 59,900 – 60,400 VND/kg.
Fresh coffee prices trade around 12,700 VND/kg.
After yesterday’s hot session, coffee prices on both exchanges adjusted due to short-term profit-taking activities of speculators, but prices still remained at a high level. Markets still have concerns about supply shortages as intra-session fluctuations show that buyers still have the upper hand.
According to weather reports from localities, the main coffee growing areas in southern Brazil are still hot and dry, which will seriously affect the next crop’s coffee yield. Rains are expected to improve this weekend. the prospect of a bumper crop next year. ICE Report Center data shows that certified inventories continue to fall to a 24-year low, which is the main market concern at the moment.
Reported exports of wet-processed Arabica coffee from Honduras, a key producer of Central America, in November reached 110,413 bags, up 63% over the same period last year.
The Indonesian Trade Authority, the world’s third largest Robusta producer, reported that October exports reached only 265,930 bags, down 275,337 bags, or 50.87% over the same period last year, contributing to cumulative exports. Coffee exports in the first 7 months of the current coffee crop (from April 2023 to March 2024) have reached a total of 1,592,838 bags, down 38.62% compared to the same period of the previous crop year.
Expectations of an end to the interest rate hike cycle in the US, even though inflation levels remain high, have supported risky assets in a positive direction. DXY decreased by 0.71%, bringing the Reais exchange rate to 1USD = 4.8800 R$, causing Brazilians to reduce the sale of exported coffee.
English (giacaphe.com)
