High demand and concerns about supply shortages have triggered automatic buying orders by funds and speculation, pushing London coffee futures prices to a 16-year high.
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued to increase. Futures for delivery in May increased by 72 USD, to 3,381 USD/ton and futures for delivery in July increased by 57 USD, to 3,271 USD/ton, very strong increases. Trading volume remains well 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 5.90 cents, to 192.20 cents/lb and July delivery futures also increased by 5.90 cents, to 189.90 cents/lb, very 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 90,800 – 91,700 VND/kg.
The continued weakening of DXY is the main factor supporting commodity prices, helping emerging markets increase purchasing power after being confident that the US Fed will only cut interest rates in the middle of this year. Coffee futures prices on the London floor maintained their upward momentum due to concerns about supply delays from Asia when international shipping routes through the Red Sea are still blocked and ICE – Europe inventories are still hovering around the level. low since 2014.
Reuters reported that traders in Vietnam said farmers and exporters are holding back about 30-35% of their harvest to wait for higher prices. Reuters emphasized that exports from this country have begun to decline since February.
Meanwhile, international website Barchart.com highlights weather conditions in Brazil “Somar Meteorologia reported on Monday that the Minas Gerais region in Brazil received only 29.4 mm of rain last week, equivalent to 50% of historical average,”. This has caused the market to continue to express concerns about supply shortages.
However, Procafé Organization emphasized that after three years of many problems, they realize that Arabica coffee trees now have a more positive scenario. The upcoming harvest will be larger than the previous cycle, but the possibility of excess production is ruled out.
ICE -Europe’s inventory report yesterday, Thursday, March 7, increased by 400 tons, or 1.71% compared to the previous day, registering at 23,750 tons (about 395,833 bags, 60 kg bags). ) contributed to the price increase on the London floor slowing down at the end of the session.
English (giacaphe.com)
