Price resistance in Vietnam’s domestic market has pushed Robusta coffee futures prices to continue to increase…
At the end of the trading session, Robusta coffee prices on ICE Europe – London extended their increasing streak to the fifth session. The March delivery term increased by 18 USD, to 2,950 USD/ton and the May delivery term increased by 15 USD, to 2,845 USD/ton, significant increases. Trading volume remains quite high above average.
On the contrary, Arabica coffee prices on the ICE US – New York floor returned to a downward trend. March delivery futures decreased by 2.95 cents, to 181.15 cents/lb and May delivery futures decreased by 3.10 cents, to 178.95 cents/lb, very significant decreases. Trading volume is very high above average.
The price of green coffee in the Central Highlands provinces increased by 300 – 400 VND, fluctuating in the range of 70,200 – 70,900 VND/kg.
Concerns about Robusta supply from Asia and the blockage of the Europe-Asia shipping route through the Suez Canal have continued to support the market’s rising prices. Contributing to support the upward price trend is also the price resistance of Vietnamese farmers when they believe that the crop output currently in the final stages of harvest will suffer more serious losses than all forecasts that have been made.
Meanwhile, Arabica coffee prices dropped again due to the prospect of increased supply from Latin American countries and the market waiting for Brazil’s 2024/2025 crop forecast to have more specific data. DXY decreased by 0.30%, causing commodity prices in general to decline, bringing the Reais exchange rate down to 1USD = 4.8915 R$, in the context of investors waiting for US inflation (CPI) in December to was announced today and suspicions of a Fed rate cut are high.
According to the CEPEA Center for Applied Economic Research of the University of Sao Paulo, persistent rain in Minas Gerais state combined with increased inventory reporting data from ICE – US has put pressure on New coffee prices. York in the short and medium term, making coffee business activities in the domestic market less effective because most of them still stand outside the markets.
English (giacaphe.com)
