Fears of supply delays have continued to push the price market up…
At the end of the first trading session of the week, Robusta coffee prices on the ICE Europe – London exchange reversed to increase. March delivery futures increased by 32 USD, to 2,869 USD/ton and May delivery futures increased by 46 USD, to 2,812 USD/ton, quite 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 3.40 cents, to 197.75 cents/lb and May delivery futures also increased by 3.40 cents, to 195.35 cents/lb, quite good increases. Trading volume is above average.
The price of green coffee in the Central Highlands provinces increased by 600 – 700 VND, fluctuating in the range of 67,800 – 68,500 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
Robusta coffee prices reversed to increase after the long Christmas holiday due to concerns about supply delays when the world’s vital maritime transport routes had problems, drying up in the Panama Canal, and shutdowns in the canal. Suez for terrorizing the Houthis. All shipping companies said they had to adjust freight rates because shipping costs were much more expensive.
DXY continued to decline due to speculation that the Fed would begin a cycle of interest rate cuts in the first quarter of the year, supporting emerging currencies, helping the global market increase purchasing power, pushing up prices of these currencies. The commodity derivatives market, especially gold and stock prices, skyrocketed.
Coffee futures prices continued their upward trend due to the rise of the Brazilian Reais to a nearly 5-month high, preventing Brazilians from selling coffee for export and declaring drought in the state of Espirito Santo, the state that produces Conilon Robusta coffee. Brazil’s government, causing the Government to consider activating a funding program for farmers suffering losses due to crop failure.
According to Reuterseven though Vietnam has harvested more than 60% of this year’s Robusta crop, supply to the market is still tight because farmers are hesitant to sell with the expectation that prices will increase.
Vietnam’s Ministry of Natural Resources and Environment said that prolonged drought and water shortage due to the El Nino weather phenomenon will cause the Central Highlands coffee region to be seriously affected in the dry season of 2024.
English (giacaphe.com)
