Hot and dry weather in southern Brazil threatens to reduce next crop output, supporting the upward price trend…
For the whole week of 4950, the London market had 5 consecutive increasing sessions. The price of Robusta coffee for January delivery increased by a total of 288 USD, or an increase of 11.21%, to 2,857 USD/ton, and for March delivery, it increased by a total of 299 USD, or an increase of 11.84%, to 2,825 USD/ton. tons, the increases are very strong. Trading volume remains well above average.
Meanwhile, the New York market had 4 increasing sessions and 1 decreasing session at the end of the week. Arabica coffee futures for March delivery increased by a total of 12.15 cents, or 6.86%, to 189.30 cents/lb and for May delivery, by a total of 11.30 cents, or by 6.44%. %, to 186.80 cents/lb, very strong increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands market increased by 6,000 – 6,100 VND, fluctuating in the range of 66,000 – 66,700 VND/kg.
Information about hot and dry weather in the main coffee growing regions in southern Brazil threatens the upcoming crop output, combined with speculation that the Fed may not raise USD interest rates further but may begin a cycle of cuts. Interest rates early next year have prompted funds and speculation to return to strong buying markets, pushing futures prices up continuously. London prices have increased to a 15-year high, as supply from Vietnam and Indonesia continues to be in short supply while demand for “bitter-rich” coffee in the global consumer market is increasing, according to the report. Reuters.
During the week, DXY had a strong trend again, causing commodity prices to increase simultaneously, while the Reais currency slowed down and did not encourage Brazilian farmers to promote export coffee sales.
The Agricultural Product Supply and Forecasting Company (Conab) has just announced its fourth coffee crop survey and adjusted Brazilian output to increase by 0.7 million bags of Arabica, causing New York’s rising momentum to stall and worries. ICO’s estimate of a global shortage of 1 million bags has been reduced.
Robusta coffee inventories issued by the London Exchange Certified and Monitored, as of Friday, December 15, decreased by another 30 tons, or 0.09% compared to a week earlier, to register at 34,560 tons. (about 576,000 bags, 60 kg bags), lower than 4 months, mainly coffee originating from Brazil.
Anh Van (giacaphe.com)
