Global coffee prices were mixed, with Arabica continuing to rise, hitting a new high. Contributing to the rally was the recovery of the Real, which hit a three-week high against the USD, discouraging Brazilians from selling their coffee for export.
For Arabica, widespread rains are expected to continue in southern and southeastern Brazil, making it more difficult for farmers to move the crop, raising concerns about export restrictions in this source. Dealers said short-term supplies are tight.
However, Robusta coffee prices recorded a sharp decline after 8 consecutive days of increase. Robusta turned down as the market needed to adjust its buying and selling position on the floor and when the leading producer, Vietnam, started the new harvest. However, the current storms are causing concerns that the quality of dried beans will be reduced and the new crop will be delayed in reaching the market.
ICE – London inventory report on October 23 decreased by another 100 tons compared to the weekend, down to 35,760 tons (about 596,000 bags, 60 kg bags), the lowest level in the past two months.
Standard arabica stocks on the New York floor remained at an 11-month low of 421,424 60-kg bags, helping arabica prices extend their upward momentum in the last session.
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| Domestic coffee prices today, October 24, slightly decreased by 200 - 300 VND/kg in some key purchasing localities. (Source: Newtimes) |
At the end of the trading session on October 24, the price of robusta coffee on the ICE Futures Europe London exchange for November 2023 delivery fell by 41 USD, trading at 2,604 USD/ton. The January 2024 delivery decreased by 33 USD, trading at 2,493 USD/ton. The average trading volume was high.
Arabica coffee prices on the ICE Futures US New York exchange for December 2023 delivery increased by 2.3 cents, trading at 168.15 cents/lb. Meanwhile, the March 2024 delivery price increased by 2.15 cents, trading at 167.1 cents/lb. Trading volume increased sharply.
Although domestic coffee prices are slightly decreasing by 200-300 VND/kg, they are still maintaining the threshold of 61,000 VND/kg.
Domestic coffee prices today, October 24, slightly decreased by 200 - 300 VND/kg in some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
The Center for Industry and Trade Information - Ministry of Industry and Trade , said that coffee supply is still scarce in Vietnam in the context that the old crop output is almost exhausted, while the new crop coffee is facing obstacles in the harvesting process.
According to the latest data from the General Department of Customs, Vietnam exported 50,967 tons of coffee (equivalent to 849,450 60kg bags) in September, down sharply by 39.8% compared to August and 47.2% compared to the same period in 2022.
Cumulative coffee exports in the first 9 months of this year stood at 1.25 million tons, down 8.3% year-on-year, and the total export value was 0.7% higher than the same period last year.
In the first 8 months of 2023, Italy increased coffee imports from Vietnam and Tanzania, but reduced imports from markets such as Brazil, Uganda, India, etc., according to the latest report of the Import-Export Department (Ministry of Industry and Trade) .
According to statistics from Eurostat, in the first 8 months of the year, Italy imported 425,800 tons of coffee from non-EU markets, worth approximately 1.32 million EUR (equivalent to 1.39 million USD), up 0.6% in volume and 1.5% in value compared to the same period last year.
In the first 8 months of 2023, Italy imported 127,100 tons of coffee from the Brazilian market, worth 493.9 million EUR (equivalent to 521.1 million USD), down 1.8% in volume but up 2.0% in value compared to the same period last year. The share of Brazilian coffee in Italy's total imports from the extra-bloc market decreased slightly from 30.57% in the first 8 months of 2022 to 29.84% in the first 8 months of the year.
In contrast, Italy increased its coffee imports from Vietnam in the first 8 months of 2023, up 18.1% in volume and 14.8% in value over the same period last year, reaching 113,400 tons, worth 249 million EUR (equivalent to 262.8 million USD). Vietnam's coffee market share in Italy's total imports from the non-EU market increased from 22.7% in the first 8 months of 2022 to 26.64% in the first 8 months of this year.
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