Tensions in the Red Sea caused oil prices to skyrocket and concerns about increased risks caused most investors to continue to stand outside the markets waiting to hear more…
At the end of the first trading session of the year, Robusta coffee prices on the ICE Europe – London floor continued to adjust. March delivery futures decreased another 37 USD, to 2,804 USD/ton and May delivery futures decreased another 25 USD, to 2,732 USD/ton, very significant reductions. Trading volume is below average.
On the contrary, the price of Arabica coffee on ICE US – New York floor reversed to increase. March delivery futures increased 1.85 cents, to 190.15 cents/lb and May delivery futures increased 1.45 cents, to 187.65 cents/lb, the increases are also very significant. Trading volume is above average.
The price of green coffee in the Central Highlands provinces decreased by 600 – 700 VND, fluctuating in the range of 67,000 – 67,900 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
The two coffee futures markets had opposite trends in the first session of the year. Robusta coffee prices continue to adjust due to new crop sales pressure from Vietnam, while Arabica coffee prices continue their upward trend due to the strong pull of DXY ahead of US economic indicators about to be announced this week. .
According to observers, the world coffee market is still concerned that Brazilian Arabica coffee productivity will decline in the 2023/2024 crop year due to prolonged drought in the past few months, while Conilon Robusta growing areas is no exception, although the market has made a strong correction when it is forecasted that rain will come in January, which will help the coffee trees relieve stress.
The global commodity market just had a rather tense session as most investors continued to stand on the sidelines because of concerns about the worsening situation in the Red Sea, causing oil prices to skyrocket right from the beginning of the session and putting pressure on the market. Long-term treasury yields, although at the end of the session, eased as investors reduced expectations for interest rate cuts after the US November PMI data was revised down.
The General Statistics Office of Vietnam estimates that coffee exports in December will reach about 190 thousand tons, down 3.5% over the same period last year, bringing coffee exports for the whole year 2023 to an estimated 1,606 million tons, down nearly 10 million tons. % compared to exports for the whole year 2022.
English (giacaphe.com)
