The sharp increase in ICE inventory reports has caused a sell-off of funds and speculation, causing coffee futures prices to continue to decline…
For the whole week of August 2024, the London market had 2 increasing sessions and 3 consecutive decreasing sessions. The price of Robusta coffee for March delivery decreased by a total of 188 USD, or a decrease of 5.82%, to 3,043 USD/ton and for May delivery, a total decrease of 111 USD, or a decrease of 3.53%, to 3,030 USD/ton. tons, the reduction levels are quite strong. Trading volume remains quite high above average.
Similarly, the New York market had 2 increasing sessions at the beginning of the week and 2 decreasing sessions at the end of the week. Arabica coffee futures for delivery in May decreased by a total of 6.40 cents, or a decrease of 3.43%, to 180.30 cents/lb and futures for delivery in July decreased by a total of 6.55 cents, or a decrease of 3.53%. %, to 179.05 cents/lb, the decrease is also quite strong. Trading volume is quite above average.
The price of green coffee last week in the Central Highlands market increased by 2,000 – 2,200 VND, fluctuating in the range of 81,500 – 82,300 VND/kg.
ICE’s inventory report data increased significantly in both markets, causing coffee futures prices to decline quite sharply, combined with the report that Vietnam’s coffee exports in January increased sharply by 67.45% compared to the previous month. same period and many expected Brazilian coffee production in the 2024/2025 crop year to be higher than previous forecasts due to the abatement of dry weather, while the Reais exchange rate continued to decline against the USD, encouraging Brazilians to Promote the sale of exported coffee. However, buying demand in Vietnam’s domestic market is currently very high, pushing domestic coffee prices in the opposite direction to futures prices in London.
Robusta coffee inventory issued by the London Exchange Certified and monitored, as of Friday, February 23, increased by 2,910 tons, or 14.48% compared to a week earlier, to register at 23,000 tons ( about 383,333 bags, 60 kg bags), a fairly strong increase, has negatively affected Robusta coffee futures prices as funds and speculators hastily sold off, despite concerns that supply is being tightened due to transportation problems. international shipping and global demand for “coffee”rich in bitterness” is getting higher and higher.
English (giacaphe.com)
