Rising tensions in the Red Sea have supported London coffee futures prices in the short term…
At the end of the weekend trading session, Robusta coffee prices on ICE Europe – London had a mixed trend. March delivery futures increased by 1 USD, to 2,939 USD/ton, while May delivery terms decreased by 17 USD, to 2,814 USD/ton, and July delivery terms decreased by 16 USD, to 2,738 USD/ton. significant reductions. Trading volume remains above average.
On the contrary, the price of Arabica coffee on ICE US – New York floor reversed and decreased. March delivery futures decreased by 4.05 cents, to 180 cents/lb and May delivery futures decreased by 3.65 cents, to 177.35 cents/lb, quite sharp drops. Trading volume remains well above average.
Coffee prices today in the Central Highlands decreased by 200 – 300 VND, fluctuating in the range of 69,800 – 70,400 VND/kg.
Robusta coffee futures prices in London continue to adjust as funds and speculators take short-term profits, after the US producer price index (PPI) report in December was lower than expected, causing expectations of interest rate cuts to increase. go up. DXY continues to increase as speculative capital flows choose to be a short-term refuge.
Meanwhile, coffee futures prices in New York dropped again because Climatempo TV predicted that the main coffee growing regions in the southeast of Brazil are about to receive significant rain, which will provide good support for the year’s Arabica crop. bumper harvest according to the upcoming “two-year” cycle.
The latest announcement from the Brazilian Institute of Geography and Statistics (IBGE) shows that the output of the 2023/2024 crop year is expected to reach approximately 58.9 million bags of 60 kg, including 40.9 million bags of Arabica and Arabica coffee. 18 million bags of Conilon Robusta. However, the National Coffee Council (CNC) emphasized the uncertainty of the harvest, saying that too much rain during fruit ripening has made it difficult to forecast more accurately.
Concerns about tighter supply from Asia continue to support London futures prices in the short term.
>> USDA: World coffee consumption is at record high, inventories hit 12-year low
English (giacaphe.com)
