Coffee sales from Brazil after the extended National Holiday have caused Arabica prices to adjust slightly, while information about heavy rain in Vietnam has increased concerns about Robusta supply shortages…
At the end of the first trading session of the week, Robusta coffee prices on ICE Europe – London increased for the third consecutive session. The November delivery term increased by 5 USD, to 2,393 USD/ton and the January delivery term increased by 12 USD, to 2,296 USD/ton, significant increases. Trading volume is above average.
In contrast, Arabica coffee prices on ICE US – New York floor adjusted after a series of consecutive increases. Futures for delivery in December decreased by 0.75 cents, to 154.15 cents/lb and futures for delivery in March 2024 decreased by 0.45 cents, to 154.70 cents/lb, slight decreases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 100 – 200 VND, fluctuating in the range of 63,600 – 64,300 VND/kg.
DXY fell slightly on expectations that the Fed will not raise interest rates anymore, in the context of the market adjusting from easing fears of escalating war. The Reais exchange rate increased by 1.03%, potentially below R$ 5.00 compared to USD, which will cause Brazil to reduce export coffee sales and this week’s weather forecast in the main coffee growing areas will be dry.
Rain-pressured Arabica coffee prices have decreased slightly after the Brazilian domestic market returned to normal operations after an extended National Holiday. Meanwhile, Robusta coffee prices have support from information about heavy rain in the Central Highlands coffee region of Vietnam, which will slow down the new crop coffee harvest in the context of ICE inventories continuing to decline, despite Brazil’s Conilon Robusta coffee export efforts increased by 329.3% in the first 3 months of the new 2023/2024 crop year.
English (giacaphe.com)
