Concerns that global coffee output is uncertain, while the danger of the El Nino weather phenomenon is near, contributing to the increase in market prices…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued the upward trend. The January delivery term increased by 106 USD, to 2,759 USD/ton and the March delivery term increased by 102 USD, to 2,724 USD/ton, extremely strong increases. Trading volume is very high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has a continuous increasing trend. March delivery futures increased by 1.15 cents, to 185.25 cents/lb and May delivery futures increased by 0.70 cents, to 182.50 cents/lb, slight increases. Trading volume is quite above average.
The price of green coffee in the Central Highlands provinces increased by 1,800 – 2,000 VND, fluctuating in the range of 63,400 – 64,000 VND/kg. Fresh coffee prices trade around 13,200 VND/kg.
The National Institute of Meteorology (Inmet) of Brazil has just issued a special warning about a period of hot, dry weather exceeding 40 degrees Celsius in the next few days, which will cover the main coffee growing areas for at least 4 days, possibly could put a strain on Brazilian output next year’s crop. CNC presents a scenario where adverse weather in the next few years and a world economic recession will cause the consumer market to decline, while global coffee production is uncertain with the USDA forecasting two Large Robusta producer in Southeast Asia’s output dropped sharply because of adverse weather. The report of a global supply surplus of 1 million bags in the 2023/2024 coffee season is also the ICO’s estimate.
The forecast of the Vietnam Coffee and Cocoa Association (Vicofa) that the output of the harvested crop will decrease to 1.6 – 1.7 million tons from 1.78 million tons the previous year, did not receive approval. consensus of coffee growers. According to them, this year’s crop output decreased by at least about 0.5 million tons, because many planting areas were converted and intercropped with high-value crops.
Coffee traders in the Southeast Asia region said that new crop Robusta coffee in the Vietnamese domestic market is currently very difficult to buy without competitive prices, while Indonesian grade 4 Sumatra coffee last week had The difference adds up to 700 USD/ton compared to the still undelivered London price.
English (giacaphe.com)
