The global coffee market is being negatively impacted by holidays in Brazil and Asia…
At the end of the trading session, Robusta coffee prices on ICE Europe – London tended to adjust. The March delivery term decreased by 25 USD, to 3,324 USD/ton and the May delivery term also decreased by 25 USD, to 3,192 USD/ton, very significant reductions. Trading volume remains quite high above average.
Similarly, Arabica coffee prices on the ICE US – New York floor have the same correction trend. March delivery futures decreased by 0.70 cents, to 195.60 cents/lb and May delivery futures decreased by 0.35 cents, to 191.15 cents/lb, slight decreases. 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 78,400 – 79,600 VND/kg.
Coffee futures prices on both exchanges adjusted after a hot session as usual. International analysts believe that the markets have reacted after the data reported that Brazilian exports in January increased by 45% over the same period announced by Cecafé, while Arabica coffee prices had previously increased to a high level. at least 1.5 months due to limited rainfall forecast in Brazil this week. In addition, ICE – Europe data shows that Robusta supply continues to decrease after the inventory report monitored by the London exchange yesterday, Monday February 12, decreased by 530 tons, or down 2.11% compared to one day. previously, reaching a new record low of 24,610 tons (about 410,167 bags, 60 kg bags).
One factor contributing to the decline in coffee futures prices is the December Trade Report of the International Coffee Organization (ICO), which said that global coffee exports in the month increased 13.6% over the same period. last year, reaching a total of 12,168 million bags. Therefore, cumulative global exports in the first 3 months of the current coffee crop year 2023/2024 have reached a total of 32,419 million bags, an increase of 6.8% over the same period of the previous coffee crop year, contributing part to ease concerns about supply shortages in the global consumer market.
Note that the global coffee market will lack liquidity due to the ongoing Carnival festival in Brazil and the traditional New Year holiday of the Year of the Dragon in Asian countries. While waiting for the second survey report of this season’s agricultural product supply and forecasting company (Conab) of Brazil, it is about to be released.
English (giacaphe.com)
