The price of coffee futures dropped sharply when there was a report that the short-term supply has improved significantly…
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. The March delivery term decreased by 45 USD to 1,924 USD/ton and the May delivery term decreased by 38 USD to 1,802 USD/ton, the reductions were quite strong. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. The March spot futures fell 3.50 cents to 170.05 cents/lb and the May delivery futures fell 3.40 cents to 169.75 cents/lb, significant declines. Trading volume remain below average.
The price of green coffee beans in the Central Highlands provinces decreased by 700-800 VND, to range from 40,100 to 40,600 VND/kg.
Coffee futures prices on both exchanges turned to plunge with supportive fundamental news. The ICE – New York inventory report rose to a five-and-a-half month high after falling to a 24-year low early last month. While ICE – London inventories in the past week have increased sharply to 63,020 tons, to 128,680 tons (equivalent to 2,144,667 bags), contributing to reducing the concern of short-term supply of Robusta.
Contributing to the decline in the price of Robusta coffee futures is the report of the General Statistics Office of Vietnam, which estimated that coffee exports in December reached 140,000 tons (about 2.33 million bags), down 16.10% compared to the previous month. compared with the same period last year, however, cumulative coffee exports for the whole year 2022 reached a total of 1,719 million tons, up 10.10% compared to the whole year of 2021.
The downward pressure on prices increased further as the year-end holiday and the 2023 New Year’s Eve approached.
The harvest of Vietnam’s new crop of Robusta coffee has entered the final stage, and farmers say that although the yield has increased, the total output has decreased by more than 10% because there is more area to be replanted and more areas for intercropping with other trees. fruit has higher economic value.
English (giacaphe.com)
