Drought in Brazil and reports of ICE inventories standing at very low levels have caused the market to fear a supply shortage, pushing coffee futures prices soaring…
At the end of the first trading session of the week, Robusta coffee prices on ICE Europe – London continued to increase. The March delivery term increased by 92 USD, to 3,220 USD/ton and the May delivery term increased by 71 USD, to 3,038 USD/ton, very strong increases. Trading volume remains 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 7.10 cents, to 192.25 cents/lb and May delivery futures increased by 5.70 cents, to 187.55 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 1,200 – 1,400 VND, fluctuating in the range of 73,500 – 74,200 VND/kg.
World freight and cargo insurance costs due to long shipping routes, having to bypass the Cape of Good Hope in South Africa and dry conditions in Brazil continue to drive the bull market.
Robusta coffee prices skyrocketed because ICE inventory report data monitored yesterday, Tuesday, January 22, fell to a record low since 2014 of 29,310 tons (about 448,500 bags, 60 kg bags). and Arabica coffee continue to increase sharply as ICE inventories still hover around a 24-year low of 247,657 bags, causing speculation and funds to continue to boost buying even though the Commitment of Traders (CFTC) report shows that markets The school has entered the zone “overbought”.
The Brazilian Coffee Exporters Association (Cecafe) reported that exports in November totaled 4.34 million bags, up 21.1% due to abundant supply after the new 2023 harvest.
The General Department of Vietnam Customs reported preliminary data showing that coffee exports in the first half of December reached 95,770 tons (about 1,596,000 bags), promising to reach a high in monthly exports despite the market There is currently a phenomenon of price resistance among farmers due to coffee prices “rich in bitterness” increasingly high with the expectation that central banks will aggressively reduce interest rates in the near future.
The Reais currency decreased by 1.25%, bringing the exchange rate down to 1 USD = 4.9889 R$ and is likely to decrease further, supporting coffee prices in the Brazilian domestic market to strengthen their increase due to concerns. The La Nina weather phenomenon will harm this year’s coffee crop.
Older brother Literature (giacaphe.com)
