ICE inventory reports continue to decline and cautious selling by Brazilians has supported coffee futures prices to regain strength…
At the end of the trading session, the price of Robusta coffee for immediate delivery on ICE Europe – London floor increased for the eighth consecutive session. The January delivery term increased by 67 USD, to 2,402 USD/ton and the March delivery term increased by 60 USD, to 2,343 USD/ton, strong increases. Trading volume remains quite high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. December delivery futures increased by 5.9 cents, to 163.95 cents/lb and March 2024 futures increased by 4.15 cents, to 161.80 cents/lb, the increases are also very strong. The trading volume is at a “huge” level, rarely seen.
The price of green coffee in the Central Highlands provinces increased by 1,200 – 1,300 VND, fluctuating in the range of 57,900 – 58,500 VND/kg.
Coffee futures prices continued to recover after the report that ICE inventories continued to decline deeply. Arabica fell to 421,614 bags, an 11-1/2-month low. Robusta decreased by 1,180 tons, down to 26,280 tons (equivalent to 604,667 bags), the lowest level in 6 weeks.
After three consecutive crop declines due to adverse weather, the National Coffee Federation (FNC) in Colombia expects this year’s output to be about 11.6 – 12 million bags due to somewhat improved weather. FNC expects to soon reach the target of 14 million bags/year after expanding the crop area. Colombia is the world’s leading producer of high-quality wet-processed Arabica coffee.
According to Safras & Mercados, up to now Brazilians have sold 56% of the total expected output of the newly harvested crop, slightly lower than the average for many years at the same time of 59%. Of which, Arabica coffee sales accounted for 52% of the crop’s output, compared to 58% sold the previous year, and Conilon coffee sales accounted for 62% of the crop’s output, compared to 64% sold the previous year. .
After yesterday’s domestic price adjustment session, the real goods market in Vietnam is almost free of price chaos, mainly due to the amount of goods needed to cover and pay off mutual debts between traders. local people before the new crop.
Currently, the Central Highlands coffee region has had many heavy rains on a large scale, hindering the harvest of the new Robusta crop that has just begun, and is also a concern for the world coffee market due to the supply of coffee. “rich in bitterness” still being tightened.
English (giacaphe.com)
