World coffee prices rose across the board, with London prices rising sharply. The market's upward trend continues to be supported by concerns about supply shortages.
Coffee prices on both exchanges rose despite selling pressure from the world's largest coffee producer and exporter, after the Monetary Policy Committee (Copom) decided to cut interest rates, raising concerns that inflation in Brazil would rise again. The continued fall of the Real encouraged farmers to boost coffee exports, causing the rise of the New York exchange to slow down.
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| Domestic coffee prices today, August 8, increased sharply by 1,000 VND/kg in some key purchasing localities. (Source: ohman.vn) |
At the end of the first trading session of the week (August 7), the price of robusta coffee on the ICE Futures Europe London exchange turned to increase sharply. The price of robusta coffee futures for delivery in September 2023 increased by 70 USD, trading at 2,682 USD/ton. The price of delivery in November increased by 66 USD, trading at 2,554 USD/ton. Trading volume was high.
Arabica coffee prices on the ICE Futures US New York floor also increased, with the September 2023 delivery period increasing by 2.6 cents, trading at 163.95 cents/lb. Meanwhile, the December 2023 delivery period increased by 2.5 cents, trading at 163.45 cents/lb. Trading volume was high.
Domestic coffee prices today, August 8, increased sharply by 1,000 VND/kg in some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
ICE reports that inventories on both exchanges continued to fall sharply have rekindled concerns about a global coffee shortage, causing investors to maintain an inverted price structure on both futures markets.
Adding to the market trend is the International Coffee Organization (ICO) June Trade Report, which forecasts a global deficit of 7.26 million bags of all types of coffee in the upcoming 2023/2024 coffee crop year.
According to observers, the inverse price structure will be maintained in the futures markets, at least until Vietnam enters the new robusta harvest at the end of the rainy season, around the end of October this year. Meanwhile, the domestic market in Brazil still maintains price resistance every time the Real strengthens again.
The latest international event for the coffee industry is the second G25 Africa Coffee Summit taking place on August 7-10 at Speke Resort Munyonyo with the theme “Transforming the African Coffee Sector through Value Addition”.
The conference is organized by the International Coffee Organization, Uganda Development Agency and Uganda's Ministry of Agriculture and is expected to attract interest from 25 coffee growing countries.
Issues to be discussed include: Synthesizing consensus on declaring coffee as a staple commodity in the African Union in line with the African Agenda 2063; Promoting value addition and domestic consumption by educating people about coffee and its health benefits; Expanding regional coffee trade within the framework of the African Continental Free Trade Area; Sharing knowledge on the imminent threat of climate change to coffee as well as the impact of Covid-19 on the coffee industry.
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