Concerns about Asian supply increased when news emerged that Houthi terrorists fired anti-ship ballistic missiles at cargo ships around the Red Sea area…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued the upward trend. The March delivery term increased by 183 USD, to 3,170 USD/ton and the May delivery term increased by 142 USD, to 3,004 USD/ton, extremely strong increases. The trading volume is “huge”, rarely seen.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. March delivery futures increased 5.25 cents, to 185.25 cents/lb and May delivery futures increased 4.70 cents, to 182.05 cents/lb, strong increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 1,200 – 1,400 VND, fluctuating in the range of 72,200 – 72,800 VND/kg.
Yesterday it was reported that Houthi terrorists had fired anti-ship ballistic missiles at a US-owned and operated cargo ship in the Red Sea area, making the situation even more tense. World coffee futures prices continued to increase on both exchanges as global concerns remained driving bullish markets.
Robusta coffee prices also have support from Vietnamese supply when the leading producer participates less in business negotiations during the upcoming traditional Tet holiday.
Meanwhile, Arabica coffee prices have received support due to concerns that recent dry weather in Brazil could cause the upcoming crop’s yield to decline. Somar Met. reported last week that major growing areas in Minas Gerais had received only 60% of the historical average.
Data analysis November Market Report of the International Coffee Organization (ICO) shows that global coffee demand will be about 10.4 million tons in the 2022/2023 crop year, largely offset from old crop inventories brought over. Any supply disruption will inevitably cause coffee prices to skyrocket.
Data reported by the ICE Report Center shows that yesterday, Tuesday, January 16, Robusta inventories decreased by 810 tons, or 2.54% compared to the previous day, down to a record low of 31,130 tons. (about 518,833 bags, 60 kg bags), of which the majority is Brazilian Conilon Robusta coffee.
English (giacaphe.com)
