Cecafe reported December export results and the Reais exchange rate is at a favorable level for Brazil to promote export coffee sales, causing speculation on both futures exchanges to adjust their net holding positions…
At the end of the trading session, Robusta coffee prices on ICE Europe – London exchange reversed and decreased. The March delivery term decreased by 14 USD, to 3,156 USD/ton and the May delivery term decreased by 42 USD, to 2,962 USD/ton, quite a decrease. Trading volume is very high 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 6.05 cents, to 179.20 cents/lb and May delivery futures also decreased by 6.05 cents, to 176.00 cents/lb, sharp drops. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 700 – 800 VND, fluctuating in the range of 71,400 – 72,000 VND/kg.
Both coffee futures markets reversed to reduce the heat of the previous session. While Robusta only decreased by 1/3 due to still very high demand, Arabica erased the previous session’s gains. According to Cepea researchers, this volatility is due to climate effects on crop yields in Brazil, the US dollar and supply-related speculation.
Most weather forecasts show that rainfall will be heavier in the near future, which tends to create favorable conditions for Arabica coffee trees to grow well. This will ultimately put pressure on prices.
According to the Embrapa Café Research Institute, in 2023 Vietnam imported 146,660 bags of coffee beans from Cafés do Brasil, ranking fifth among six major coffee producers that imported coffee from coffee producers and exporters. Top of the world.
A stronger-than-expected retail sales report in the US could delay the start of the rate-cutting cycle. Tensions in the Red Sea could negatively impact global inflation and interest rates. DXY increased by 0.1%, causing the Reais exchange rate to drop to 1 USD = 4.9295 R$, continuing to support Brazilians to promote export coffee sales.
The Coffee Exporters Association (Cecafé) in Brazil reported coffee bean exports in December totaled 3.78 million bags, up 30.58% year-on-year, including 3.26 million bags. million bags of Arabica coffee, an increase of 15.19% and 526,974 bags of Conilon Robusta coffee, an increase of 750.07% over the same period last year.
At the same time, Cecafé also reported cumulative coffee bean exports for the first six months of the current Brazilian coffee year, (July 2023 to June 2024), overall higher than 25.99 % over the same period of the previous crop year, reaching a total of 22.30 million bags of coffee.
English (giacaphe.com)
