World coffee prices continued to fluctuate in opposite directions at the beginning of the week, with robusta coffee prices increasing and arabica decreasing.
Robusta coffee prices continued to rise, at times surpassing $3,000 per tonne as supply was constantly threatened. Robusta coffee futures prices also increased again due to concerns about supply shortages from major Asian producers, as the vital Asia-Europe shipping route through the Suez Canal became very dangerous. Record low inventories continued to support the London exchange's rise.
Domestic coffee prices increased by 600 VND/kg in localities to fluctuate within the range of 70,600 - 71,300 VND/kg.
Information about the first 3 months of the 2023/2024 crop year from Vietnam decreasing by nearly 10% compared to the previous crop year has contributed to concerns about a shortage of robusta coffee supply from Asia.
While the news from Brazil is positive, attention continues to be focused on climate conditions. Rainfall is now more favorable, but there is still some uncertainty regarding the 2024 harvest. High temperatures in recent years are expected to have a negative impact on production, so it remains difficult to predict output from the world’s largest supplier.
The Coffee Board of India estimates that the country's coffee output could rise to 374,200 tonnes in the 2023/24 crop year that began on October 1, compared with 352,000 tonnes in the previous year.
According to inventory data reported on January 16, robusta inventories fell by another 1,170 tons, or 8.92%, compared to the end of last week, to 31,940 tons (about 532,333 bags, 60 kg bags), a new record low since early September 2023.
 |
| Domestic coffee prices today, January 16, increased by 600 VND/kg in some key purchasing localities. (Source: Kitco) |
At the end of the first trading session of the week (January 16), the price of robusta coffee on the ICE Futures Europe London exchange increased again, the delivery term for March 2024 increased by 48 USD, trading at 2,987 USD/ton. The delivery term for May 2024 increased by 48 USD, trading at 2,861 USD/ton. Trading volume was low.
On January 15, the New York market was closed for Martin Luther King Day, closed all day without trading. Arabica coffee prices on the ICE Futures US New York exchange remained unchanged at the closing price of last week, with the March 2024 delivery period down 4.05 cents, trading at 180.00 cents/lb. Meanwhile, the May 2024 delivery period fell 3.65 cents, trading at 177.35 cents/lb. Average trading volume.
Domestic coffee prices today, January 16, increased by 600 VND/kg in some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
Last week, Robusta coffee prices had 3 sessions of increase and 2 sessions of decrease, with quite a few increases. Robusta coffee futures for March delivery increased by a total of 144 USD, or 3.11%, to 2,939 USD/ton. Trading volume was above average .
Arabica coffee prices had 3 sessions of decline and 2 sessions of increase, the declines were very significant. Arabica coffee futures for March delivery decreased by 2.80 cents, or 1.53%, to 180 cents/lb. Trading volume was quite high above average.
The DXY index fell 0.31% last week, with observers continuing to monitor ICE-certified inventories – which remain low – as well as logistics and weather issues in Brazil.
Market experts say that Arabica coffee futures prices will hover around the 180-200 cent/lb range for a considerable time.
Meanwhile, robusta inventories are at a record low for many years, contributing to the strong increase in London coffee futures prices this week.
Source
Comment (0)