Weather reports of lack of rain in Brazil’s main growing regions have boosted market prices…
At the end of the first trading session of the week, the price of Robusta coffee on the ICE Europe – London exchange reversed and skyrocketed. January delivery futures increased by 84 USD, to 2,653 USD/ton and March delivery futures increased by 96 USD, to 2,622 USD/ton, very strong increases. Trading volume is above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. March delivery futures increased by 6.95 cents, to 184.10 cents/lb and May delivery futures increased by 6.30 cents, to 181.80 cents/lb, the increases are also very strong. Trading volume is very high above average.
The price of green coffee in the Central Highlands provinces increased by 1,600 – 1,700 VND, fluctuating in the range of 61,600 – 62,300 VND/kg.
Fresh coffee prices trade around 13,000 VND/kg.
Fears of dry weather in Brazil have fueled market price increases, despite the ongoing harvest in Vietnam. According to Barchart.com, Somar Met. reported that the Brazilian state of Minas Gerais last week received only 53% of the historical average of rain, causing drought concerns in major coffee growing regions to be raised again. A new heat wave is forecast to stress next year’s crop.
The General Department of Vietnam Customs reported preliminary data showing that coffee exports in November reached 119,297 tons (about 1,988 million bags), down 7.44% over the same period last year. Therefore, cumulative coffee exports in the first 11 months of the year reached a total of 1,415,983 tons (equivalent to 23.4 million bags), down 10.41% over the same period, supporting the upward price trend.
According to the Coffee Export Council (Cecafé) in Brazil, exports in November reached 4.329 million bags of coffee of all kinds, up 15.4% over the same period last year, of which exports of canephora (robusta and conilon) reached 856,000 bags, an increase of 678% over the same period.
Note, the market still maintains the El Nino weather forecast over the Pacific rim at the end of December this year and early next year.
English (giacaphe.com)
