July Arabica coffee traded on Tuesday closed down 13.85 cents/pound and Robusta coffee closed down $143/ton, at $4021/ton.
The domestic price of the Vietnamese market still remains above 130,000 VND/kg after two sessions of strong falls for Robusta products.
The dollar’s rise weighed on most commodities traded on Tuesday, including coffee, which was liquidating long positions.
Coffee prices dropped sharply on Tuesday, also helped by an update to the weather forecast in Brazil, with rain likely next week.
Dry conditions in Brazil could reduce coffee output that has supported high prices, after Somar Meteorologia reported on Monday that Brazil’s Minas Gerais region received no any rainfall, or equivalent to 0% of the historical average over the past week. Now that worry has somewhat subsided with the new forecast, there will likely be rain next week.
The dry weather situation in the Central Highlands of Vietnam continues to be tense, although there has been rain in some places, many farmers in large districts such as Di Linh, Buon Ho, Buon Ma area Thuot said there has not been enough rain yet to promptly save their trees from drying out.
Kinh Vu (giacaphe.com)
