Fears of a decline in global coffee production have pushed the market to increase prices…
At the end of the trading session, Robusta coffee prices on ICE Europe – London floor reversed and recovered. January delivery futures increased by 39 USD, to 2,585 USD/ton and March delivery futures increased by 40 USD, to 2,553 USD/ton, quite 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. March delivery futures increased 4.35 cents, to 183.75 cents/lb and May delivery futures increased 4.25 cents, to 181.50 cents/lb, strong increases. Trading volume remains well above average.
The price of green coffee today in the Central Highlands provinces increased by 700 – 800 VND, fluctuating in the range of 60,200 – 60,700 VND/kg.
Fresh coffee prices trade around 12,800 VND/kg.
Coffee futures prices reversed and recovered due to concerns that global coffee production will decline in the new crop year after reports of rainy weather last week in the main Arabica coffee growing areas in southern Brazil were lower than average. historical average.
The largest investment bank in Latin America BBA has expressed partial disappointment about the flowering of coffee plantations in November because this will make next crop’s coffee output even more limited, which will not exceed surpassing the historical record of the 2020/2021 crop year at about 70 million bags.
BBA experts assessed that the first flowering in September was satisfactory, but the flowering in November did not meet expectations, causing them to no longer believe that the upcoming harvest will reach a record.
The Vietnam Coffee and Cocoa Association (Vicofa) expects coffee output in the 2023/2024 crop year, mainly Robusta coffee, to decrease to 1.6 – 1.7 million tons, down about 10%. compared to the previous crop year because of unfavorable weather and because farmers increased the area of intercropping.
The October market report of the International Coffee Organization (ICO) shows that global coffee exports in the month reached 9.53 million bags, up 0.84% over the same period last year at only 9.45 million bags. million bags due to congestion at agricultural export ports. ICO expects a small surplus in the 2023/2024 crop year of about 1 million bags compared to a shortfall of 4.9 million bags in the previous crop year.
According to ICO, global coffee production in the 2023/2024 crop year is expected to increase by 5.8% compared to the previous crop, to 178 million bags, of which Arabica coffee increased by 8.7% to 102.2 million bags. and Robusta coffee increased by 2.2% to 75.8 million bags. Meanwhile, global coffee consumption is expected to increase by 2.2% to 177 million bags.
The US October Jolts report below market expectations helped DXY regain strength in a basket of major currencies and boosted expectations for payrolls, one of the key gauges of the world’s largest economy. will be announced this Friday.
Robusta coffee inventories monitored by ICE – London yesterday, Tuesday, December 5, decreased by 1,780 tons, or 4.53% compared to the previous day, down to register at 37,500 tons (about 625,000 bags, 60 kg bag), lowest level in 3 weeks.
English (giacaphe.com)
