The weather forecast in the main coffee regions in southern Brazil will be dry next week, although there will be scattered rain with very low amounts below the historical average…
At the end of the trading session, Robusta coffee prices on the ICE Europe – London exchange reversed to increase. Futures for delivery in May increased by 70 USD, to 3,385 USD/ton and futures for delivery in July increased by 67 USD, to 3,288 USD/ton, 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. May delivery futures increased by 3.30 cents, to 185.70 cents/lb and July delivery futures increased by 3.25 cents, to 184.65 cents/lb, strong increases. 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 94,600 – 95,200 VND/kg.
Somar Met.TV reported that the main coffee regions had rain last week but the rainfall was very low. In Minas Gerais state, Brazil’s main Arabica coffee growing region only reached 16% of the historical average, this contributed part that causes the risk of frost as winter is approaching.
Strong fluctuations in the US stock market have caused investors to shift capital flows into markets with more attractive profits, and derivatives exchanges such as gold and coffee are chosen by investors to pour capital into. yesterday’s session, after the Fed confirmed that there will be 3 interest rate cuts expected in 2024, despite the strong increase in the DXY index, which is not beneficial for commodity prices in general.
According to Reuters, low supply and high demand have caused the price of green Robusta coffee in the Vietnamese domestic market to soon reach a record high of 100,000 VND/kg. Meanwhile, domestic traders have increased the price difference (Dif.) to 550 – 650 USD/ton compared to the current futures price in London to buy goods. Another trader said there had been rain in some areas, but there were still concerns about a possible lack of irrigation water, which could harm next crop’s output. Export traders in Indonesia are no less competitive when offering Lampung coffee grade 4, 80 defective beans, at a price 800 – 850 USD/ton higher than the London price.
The February 2024 Market Report of the International Coffee Organization (ICO) said that in the 2023/23024 crop year, global coffee production is estimated to reach 178 million bags, 60 kg bags, of which Arabica coffee will about 102.2 million bags (accounting for 57.4%) and Robusta coffee is 75.8 million bags. Global consumption is still growing steadily at 2.2% to 177 million bags, especially in Asian countries. If this data is confirmed, this crop year there will be a global surplus of about 1 million bags.
English (giacaphe.com)
