Rainfall reports in southern Brazil did not meet expectations, causing concerns about the next crop’s output to increase, while there is still the El Nino weather phenomenon at the end of this year…
At the end of the trading session, Robusta coffee prices on ICE Europe – London had a mixed trend. January delivery terms decreased by 7 USD, down to 2,539 USD/ton, while distant delivery terms all increased. Specifically, the March delivery term increased by 3 USD, to 2,481 USD/ton, and the May delivery term increased by 2 USD, to 2,445 USD/ton, slight increases. Trading volume is very high above average.
On the contrary, the price of Arabica coffee on the ICE US – New York floor reversed and skyrocketed. March delivery futures increased by 4.05 cents, to 173.10 cents/lb and May delivery futures increased by 4.20 cents, to 170.50 cents/lb, strong increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces has not changed, still fluctuating in the range of 59,200 – 59,600 VND/kg.
The price of fresh coffee remains stable around 12,500 VND/kg.
Arabica coffee prices rose to a more than 1-week high as funds and speculators stepped up buying after reports that rainfall in the main coffee regions in southern Brazil did not meet expectations, while forecasts of weather phenomena El Nino weather causing drought at the end of this year is still intact.
Robusta coffee prices fluctuate in hesitation as the parties still argue that the output of Vietnam’s currently harvested crop will decrease by more than 10% compared to the previous crop. Meanwhile, the Mecosur Agreement (on the origin of coffee not grown on land due to deforestation) between the EU and Brazil has not yet been signed because the two sides are still debating.
At the 2023 Swiss Coffee Gala, many international traders proposed large orders to Vietnamese exporters for new-crop Robusta goods with an additional 150 USD/ton for delivery at the end of December, but there was still no commitment. record. According to Southeast Asian coffee traders, speculative capital in the domestic market in this region is flowing strongly into new crop coffee products, so it is not easy to get large quantities of goods at this time.
Inventory reports on both exchanges still attract the attention of the short- and medium-term futures market.
The world financial markets continue to have mixed fluctuations with speeches from Fed officials not clearly expressing their views on maintaining current interest rates. Wall Street investors expect the PCE report on inflation to be released at the end of December. The Reais increased by 0.56%, raising the exchange rate to 1USD = 4.8713 R$, also causing Brazilians to reduce selling. Coffee exports have supported rising market prices.
English (giacaphe.com)
