Coffee futures prices continue to adjust due to speculators taking short-term profits and the market decreasing purchasing power…
At the end of the first trading session of the week, Robusta coffee prices on the ICE Europe – London exchange continued a downward trend. January delivery futures decreased by 26 USD, to 2,546 USD/ton and March delivery futures decreased by 16 USD, to 2,513 USD/ton, very significant reductions. Trading volume remains well above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased by 4.95 cents, to 179.40 cents/lb and May delivery futures decreased by 4.45 cents, to 177.25 cents/lb, sharp drops. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 400 – 500 VND, fluctuating in the range of 59,500 – 59,900 VND/kg.
Fresh coffee prices are still trading around 12,700 VND/kg.
Coffee futures prices continued to decline due to profit-taking by speculators after reports of increased exports from major producing countries and weather reports in southern Brazil that had scattered rain to ease the dry heat. , while there is still a forecast that the El Nino weather phenomenon around the Pacific rim is increasingly approaching.
Trade data from the Brazilian government agency shows that coffee bean exports in November increased 1.5% year-on-year, to a total of 33.073 million bags.
According to observers, the recent decline in coffee futures markets is due to the ICE inventory report recording a significant addition from Central American supplies. Reported data from the National Coffee Federation (FNC) of Colombia shows that over the past year, the world’s leading producer of high-quality wet-processed Arabica coffee has coordinated closely with the Government in promoting The area of coffee replanted with new varieties with higher productivity and disease resistance reached about 60.46 thousand hectares, with the expectation of soon reaching the output target of 14 million bags/year.
Falling crude oil prices have had a negative impact on most commodity markets in general after the OPEC+ conference on production cuts, causing DXY to weaken compared to emerging currencies, causing the market to lose purchasing power. and pulled the Reais exchange rate down by 1.38% to 1 USD = 4,978 R$, supporting Brazilians selling coffee for export, causing the price to fall even deeper.
English (giacaphe.com)
