May Arabica coffee traded on Thursday closed up 3.15 cents and Robusta coffee closed down $46, sitting at $3,766/ton.
The market traded in a mixed session, with Arabica coffee rising to its highest level in nearly six months and Robusta coffee reaching a new record high, before gradually falling. Concerns that excessive drought in Vietnam will limit domestic Robusta coffee production are still factors driving Robusta coffee prices and supporting Arabica coffee prices.
However, Robusta coffee prices later abandoned their high mark and fell due to profit-taking after ICE-monitored Robusta coffee inventories reportedly increased to their highest level in the past 2 and a half months. , located at 3,094 lots.
On Tuesday, Vietnam’s Ministry of Agriculture reported that Vietnam’s first-quarter coffee exports increased 8.3% year-on-year to 599,000 tons.
The weather in Brazil will continue to be monitored throughout April, with good rainfall reported across the main coffee-growing regions during the late March and early April period. Weather forecasters predict heavy rainfall. Rain will continue to arrive into April, which is considered seasonally normal for this time of year.
According to the National Research Center called CEPEA, the Conillon Robusta crop has begun to be harvested in some areas, while Brazilian domestic prices surpassed the mark of 1,000 reals per 60 kg bag for the first time yesterday, It is known that the current price of Real is about 5,051 Real to exchange for 1 USD.
Brazilian domestic prices rose following a situation where the London Futures Market reached a record high in the previous day’s trading session.
Stocks of certified graded Arabica coffee held in the New York Arabica coffee market were said to have increased by 12,603 bags yesterday.
The supply situation of Robusta from India is said to be facing the same problem as in Vietnam when prices have increased sharply in recent times. Sources from Bengaluru said that growers are limiting the sale of Robusta coffee as prices continue to rise, making exporters struggle to meet signed contracts.
Indian coffee prices are moving in sync with global Robusta coffee prices, which are witnessing a strong upward trend due to supply disruptions from leading producer Vietnam.
India’s exports in the financial year ending March 2024 have touched a record level in value, exceeding $1.26 billion thanks to rising Robusta coffee prices.
Indian coffee exporters are concerned that rising Robusta coffee prices may cause customers to switch to buying in other producing countries, while some Vietnamese exporters also have similar concerns.
Due to the drop in Robusta prices yesterday, this morning the domestic market in the Central Highlands provinces also reduced the buying price compared to the previous day. Specifically, this morning’s buying price was temporarily announced as follows:
Kontum: 102.2k
GiaLai: 102.2k
Dak Lak: 102.1k
Dak Nong: 102.4k
Lam Dong: 101.8k
Please note that prices after 10am each day are subject to revision by the Companies and Purchasing Agents.
Kinh Vu (Giacaphe.com)
