Cotton prices increase sharply, coffee prices move in opposite directions

In its August Agricultural Supply and Demand Report, the U.S. Department of Agriculture (USDA) forecasts global cotton production in 2023/24 to be 2.7 million bales lower than the July estimate, largely due to a decline in U.S. production of an estimated 2.5 million bales. Meanwhile, global cotton demand will increase by 500,000 bales compared to the previous forecast.

Meanwhile, the prices of the two coffee products moved in opposite directions. Specifically, Arabica recorded a decrease of 2.20% with 4 out of 5 sessions closing in red. In contrast, Robusta coffee improved with an increase of 2.30% compared to the reference. The contrast in supply between the two products was the main factor causing the coffee prices to move in opposite directions last week.

As for Arabica, Brazil’s coffee exports are getting a boost as the 2023/24 Arabica harvest has reached 80% of the area. Brazil’s exports of Arabica beans reached 2.19 million tonnes in July, up 6.5% from a year earlier, exporters association Cecafe said.

Meanwhile, information providers are optimistic about the country’s 2023/24 coffee production. Risk and analytics provider Hedge Point Global Markets said Brazilian farmers are expected to produce 65.8 million 60-kg bags of coffee in 2023, up from the previous forecast of 63.8 million bags.

With the current supply situation gradually becoming available, MXV believes that Arabica prices this week are likely to continue to weaken.

On the contrary, for Robusta, coffee exports in our country still show a decline. According to data from the General Department of Customs, in July, Vietnam exported 108,872 tons of coffee, down 22.6% compared to the previous month. At the same time, the cumulative coffee exports in the first 7 months of this year of our country decreased by 3.4% compared to the same period last year, at 1,116,804 tons. Low coffee exports in our country - the world's largest Robusta supplier - continue to raise concerns about supply shortages in the market, even though Brazil is promoting the sale of new crop coffee.

Recorded this morning (August 14), in the domestic market, the price of raw coffee beans in the Central Highlands and the Southern provinces decreased slightly by 100 VND/kg compared to the previous day, being purchased at around 66,500-67,400 VND/kg. Compared to last week, the domestic coffee price has decreased by about 600 VND/kg.

Source: https://baodienbienphu.com.vn/tin-tuc/kinh-te/208196/bong-tang-manh-gia-ca-phe-dien-bien-trai-chieu