The stronger Reais exchange rate has contributed to supporting coffee futures prices, extending the chain of increases…
At the end of the first trading session of the week, Robusta coffee prices on the ICE Europe – London floor extended the series of increases for the eighth session. The January delivery term increased by 68 USD, to 2,526 USD/ton and the March delivery term increased by 47 USD, to 2,526 USD/ton, quite strong increases. Trading volume is very high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has a continuous increasing trend. December delivery futures increased by 0.60 cents, to 165.85 cents/lb and March 2024 delivery futures increased by 0.55 cents, to 164.95 cents/lb, significant increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 1,300 – 1,400 VND, fluctuating in the range of 60,600 – 61,300 VND/kg.
Chain-extending coffee futures rose from two weeks ago to new highs, with Arabica hitting a two-and-a-half-month high and Robusta reaching a five-week high. Contributing to strengthening the upward momentum is the recovery of the Brazilian Reais to a 3-week high against the USD, according to data from Barchart.com. The stronger Reais has discouraged Brazilians from selling coffee for export.
Although the Reais increased by 0.29%, easing its decline, the exchange rate currently at 1 USD = 5.0163 R$ is said to still be in negative territory.
The price recovery compared to last month has helped parties participate in more negotiations, but the sales pace is still slower than previous years, according to analysis by Safras & Mercados.
Robusta coffee prices are still rising sharply even when the leading producer has started a new harvest. However, storms are currently causing concerns that they will reduce the quality of dried beans and new crop supplies will be slow to reach the market, while Southeast Asian coffee currently has extremely high price differences.
The ICE – London inventory report on October 23 decreased by 100 tons compared to the weekend, down to 35,760 tons (about 596,000 bags, 60 kg bags), the lowest level in the past two months.
English (giacaphe.com)
