Although coffee futures prices on the London floor decreased, prices in the Vietnamese domestic market still increased due to the buying demand of export traders…
At the end of the trading session, Robusta coffee prices on ICE Europe – London exchange reversed and decreased. The March delivery term decreased by 32 USD, to 3,248 USD/ton and the May delivery term decreased by 26 USD, to 3,146 USD/ton, very significant decreases. Trading volume is quite above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor also tends to decrease. March delivery futures decreased by 0.45 cents, to 186.25 cents/lb and May delivery futures decreased by 0.55 cents, to 185.05 cents/lb, slight decreases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 300 – 400 VND, fluctuating in the range of 81,600 – 82,400 VND/kg.
Coffee prices on both floors are adjusted when the March contract expiration is near. Somar Met. reported that last week there was above-historic average rainfall, easing drought conditions across key growing regions in southern Brazil. In addition, the Reais exchange rate rose to a two-week high, encouraging Brazilians to increase export coffee sales after the Carnival holiday, while the Central Bank of China (PBoC) restored investor confidence with measures. The measure to cut the 5-year RMB interest rate by 0.25% to 3.95%/year caused DXY to decline again, causing most commodity prices to weaken as investors showed excitement. Because China is the world’s largest consumer market for goods.
Robusta coffee prices have slowed down as concerns about supply from main producing countries in Asia remain. Yesterday, Tuesday, February 20, data reported by ICE – Europe showed that inventory levels continued to decline to a record low of 19,600 tons (about 326,667 bags, 60 kg bags), a low since 2014. Fears of risk increased when Houthi terrorists fired anti-ship ballistic missiles at a British-owned cargo ship circulating in the Red Sea area over the weekend.
Recent Brazilian export data shows that China has taken third place among important Brazilian coffee importers, behind the US and Japan. However, due to the barrier of traditional tea drinking culture, coffee consumption in China is still not high.
English (giacaphe.com)
