Concerns from the Southeast Asian market are the main factor pushing Robusta coffee futures prices to set new historic highs…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued to increase. The January delivery term increased by 172 USD, to 3,179 USD/ton and the March delivery term increased by 94 USD, to 2,964 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 3 cents, to 193.60 cents/lb and May delivery futures increased by 2.95 cents, to 191.10 cents/lb, quite good increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 1,700 – 1,800 VND, fluctuating in the range of 69,300 – 69,800 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
Robusta coffee futures prices set a new all-time high after the USDA’s six-monthly report revised down global Robusta coffee production from 78.0 million bags to 74.1 million bags by two producers. Main exports in Southeast Asia decreased in output because of adverse weather. USDA also adjusted global coffee production in the 2023/2024 crop year to 171.4 million bags compared to the June estimate of 174.3 million bags and adjusted global inventory levels to carry over to the new crop year. from 31.8 million bags to 26.5 million bags compared to the previous estimate.
Concerns from the Southeast Asian market are the main factor pushing Robusta coffee futures prices to set new historic highs. USDA estimates Vietnam’s current crop output at only 27.5 million bags, down at least 3.8 million bags from the previous estimate. Indonesia’s output in the current coffee crop year 2023/2024 is expected to reach only 9.7 million bags, down 2.15 million bags.
A study by Nescafé Switzerland shows that coffee trees are vulnerable to climate change. It is estimated that in the next 30 years, basically 50% of arable land will no longer be able to produce if there is no timely response strategy. It is known that Nescafé consumes about 1/3 of Vietnam’s Robusta coffee output… Nescafé also expects that by 2040, the world will have a shortage of about 35 million bags of Robusta due to the trend of consuming “coffee”.rich in bitter taste” increasing.
English (giacaphe.com)
