During the past week, there was not much information affecting the market. Although transaction prices fluctuated, the results were almost unchanged. At the end of the week, the March Robusta market closed at $4,966/ton. only down 02$ compared to last week, however the domestic market price this weekend decreased by about 1200 VND/kg.
March Arabica coffee closed the week at 323.85, up 5.2 cents compared to last week’s 318.65 cents/pound.
Arabica coffee prices on the world market remained stable and closed the week higher as rainfall in Brazil was assessed as below normal as Somar Meteorologia reported on Monday that the country’s largest Arabica growing area Brazil’s Minas Gerais received 62.5 mm of rain last week, or 86% of the historical average.
Except for being influenced by technical characteristics, current coffee prices from the two markets are under different pressures and supports, while Robusta coffee is in its peak season in Vietnam thanks to good sunshine. , sales volume has also increased, we can see that through the pressure of domestic buying prices, which have decreased by about 1200 VND/kg compared to last week, which is equivalent to a decrease of about $50/ton. despite the price on the London floor last week only dropped 02$. Robusta coffee was also under pressure on Friday after the General Department of Vietnam Customs reported that Vietnam’s December coffee exports increased 102.6% year-on-year, reaching 127,655 tons.
Technically, Arabica prices are currently controlled in the reaction range at about 328-329 cents/pound and the support level is around 315 cents. While the price of Robusta is considered difficult to increase or decrease compared to the current price range of about $4,989, at least until next week, technically there is no clear trend for Robusta. It can be said that this market is in a sideways phase.
Inventories of certified graded Arabica coffee held on the New York exchange are expected to decrease by 415 bags last week, sitting at 980,543 bags.
The March 2025 contract price difference of the two markets has now returned to a stable level of 93.70 cents/pound. This is also the difference that has often been maintained up to now, reflecting the balance of value comparison between the two types.
Kinh Vu (giacaphe.com)
