Coffee futures markets have almost shed the gains of the previous session.
At the end of the weekend trading session, Robusta coffee prices on the ICE Europe – London exchange reversed and decreased. Futures for delivery in May decreased by 84 USD, to 3,297 USD/ton and futures for delivery in July decreased by 81 USD, to 3,190 USD/ton, very sharp decreases. Trading volume is above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. Futures for May delivery decreased by 7 cents, to 185.20 cents/lb and futures for July delivery decreased by 6.45 cents, to 183.45 cents/lb, very sharp drops. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 1,200 – 1,400 VND, fluctuating in the range of 90,200 – 90,700 VND/kg.
Coffee prices fell sharply again as forecasts of rain in Brazil eased concerns about dry conditions, prompting funds and speculators to liquidate net positions on both coffee futures exchanges. Yesterday, weather forecasts said there would be heavy rain in Brazil’s main coffee growing regions in the next few days. In addition, the Reais-Brazil exchange rate dropped to the lowest level of the week compared to the USD, encouraging Brazilians to boost export coffee sales by earning more domestic currency.
According to consultants and analysts Safras & Mercados, financial market volatility is the main factor causing strong fluctuations on commodity exchanges in general more than any fundamental support.
Coffee prices in the domestic markets of Vietnam and Indonesia reached new records this week due to low inventories and still very high demand. The price difference (Dif.) is pushed up very high, at 500 – 550 USD/ton for Robusta coffee type II, 5% broken black and at 750 – 800 USD/ton for Sumatra coffee type 4, 80 defective seeds.
Attacks on shipping vessels in the Red Sea, blocking international shipping routes from Asia to Europe, have had a strong impact on prices, while data reported by ICE – Europe shows that inventories are certified. Receipts have recently dropped to historic lows. Coffee export reports from major producing countries, more or less significantly improving, could not prevent futures prices in London from falling to a 16-year low after the Fed announced it would delay interest rate cuts. currency at the end of the year helped funds and speculators aggressively splash money on commodity derivatives exchanges.
It is expected that coffee prices will fluctuate significantly when Brazil is about to enter this year’s new harvest.
English (giacaphe.com)
