Market concerns about the slow supply of Robusta coffee have pushed prices up…
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in January increased by 28 USD to 1,842 USD/ton and term for delivery in March increased by 22 USD to 1,812 USD/ton, significant increases. Trading volume very below average.
Meanwhile, the price of Arabica coffee on the ICE US floor – New York unchanged as the market is closed for Thanksgiving Day.
The price of green coffee beans in the Central Highlands provinces increased by 400-500 dong, up to range from 40,400 to 40,800 dong/kg.
Robusta coffee price recovered very significantly in the session alone due to heightened risk aversion causing funds and speculators to adjust their net positions. According to observers, the short-term upside reversal in coffee price was mainly due to technical buying as the markets fell into oversold territory and funds and speculators took short-term profits. The London market also had support. from fears of increased covid cases in China causing more demand for raw materials to produce instant coffee for the consumer market.
The Foreign Agricultural Network (FAS) under the US Department of Agriculture (USDA) estimates that in coffee year 2022/2023, Vietnam will export about 27.65 million bags, slightly lower than 27.7 million bags. exported in the previous crop year 2021/2022. International traders also said that Vietnamese farmers have now harvested an estimated 38% of the new crop, 30% higher than the five-year average, but it is not easy to buy as farmers will not sell in low price zone because they will lose.
Meanwhile, the Reais increased 1.08%, the exchange rate at 1 USD = 5,3110 R$ will not encourage Brazilians to promote export of agricultural products. Due to the Thanksgiving holiday, there is no significant impact on the financial markets as a whole.
According to Cooxupé, the largest coffee cooperative in Brazil and the world, the scale of coffee production in 2023 under their management is once again disappointing, when only equivalent to 2021 and 2022.
The price of Sumatra coffee grade 4, 80 beans error of Indonesia, currently has a difference of 180-200 USD/ton compared to the London floor futures price.
English (giacaphe.com)
