Coffee prices continue to fall, hedge funds push sales, what's going on?

Increasing concerns that the Fed will continue to raise interest rates at its year-end meeting have caused commodity prices, including coffee, to continue to slide.

Global coffee prices continued to fall on all domestic and foreign exchanges as hedge funds liquidated previously purchased contracts. Arabica coffee prices were pushed to a 35-week low as the US dollar remained high.

Meanwhile, Arabica coffee prices remained under pressure from improved weather in Brazil’s major coffee-growing regions. Forecasts of rain in Brazil’s coffee-growing regions have eased drought concerns and weighed on coffee prices. Improved weather conditions have prompted funds and speculators to sell coffee futures.

Arabica coffee inventories on the ICE Futures US exchange as of October 3 increased by 2,926 bags, reaching 444,871 bags (60 kg/bag). All of the additional coffee came from Brazil. Currently, on the ICE Futures New York exchange, there are still more than 7,000 bags of Brazilian arabica coffee awaiting additional grading in the following sessions.

Giá cà phê hôm nay 23/7: (Nguồn: YouTube)

Domestic coffee prices today, October 6, continued to decrease by 400 - 500 VND/kg in some key purchasing localities. (Source: YouTube)

At the end of the trading session on October 5, coffee prices continued to fall sharply on both exchanges. Robusta coffee prices on the ICE Futures Europe London exchange for November 2023 delivery decreased by 2 USD, trading at 2,378 USD/ton. The January 2024 delivery decreased by 13 USD, trading at 2,302 USD/ton. Trading volume was high on average.

Arabica coffee prices on the ICE Futures US New York exchange for December 2023 delivery decreased by 0.95 cents, trading at 145.4 cents/lb. Meanwhile, the price for March 2024 delivery decreased by 0.95 cents, trading at 146.4 cents/lb. Average trading volume.

Domestic coffee prices today, October 6, continued to decrease by 400 - 500 VND/kg in some key purchasing localities.

Average price	Change
USD/VND exchange rate	24,220	0
DAK LAK	64,500	- 500
LAM DONG	64,000	- 400
GIA LAI	64,400	- 400
DAK NONG	64,600	- 400

Unit: VND/kg.

(Source: Giacaphe.com)

After hitting an 11-month high earlier this week, the DXY index has retreated as investors turn their attention to the US Department of Labor’s employment data due on October 6. The latest betting odds suggest the Fed will raise interest rates further at its year-end meeting, sending commodity prices tumbling.

Information about the German market, according to statistics from Eurostat, in the first 7 months of 2023, Germany imported 156,300 tons of coffee from Vietnam, worth 332.55 million Euros (equivalent to 351.18 million USD), up 10.1% in volume and 6.4% in value over the same period last year. Vietnam's coffee market share in Germany's total imports from the world increased from 19.24% in the first 7 months of 2022 to 23.35% in the first 7 months of 2023.

In the first 7 months of 2023, Germany imported approximately 669,400 tons of coffee from the world, worth 2.6 billion EUR (equivalent to 2.75 billion USD), down 9.3% in volume and 16% in value compared to the same period last year, according to the latest report of the Import-Export Department ( Ministry of Industry and Trade ).

In July 2023 alone, Germany imported 88,900 tons of coffee from the world, worth 349 million EUR (equivalent to 368.58 million USD), down 9.1% in volume and 11.8% in value compared to June 2023, and down 17% in volume and 26.3% in value compared to July 2022.

In the first 7 months of 2023, the average import price of German coffee from the world reached 3,888 EUR/ton, down 7.5% compared to the same period last year. In particular, the average import price of German coffee from most domestic and foreign markets decreased, except for Italy and Spain.

In the first 7 months of 2023, Germany imported 104,550 tons of coffee from the intra-bloc market, worth 613.2 million EUR (equivalent to 647.54 million USD), up 20.5% in volume and 14.1% in value over the same period last year. However, for the extra-bloc market, in the first 7 months of 2023, Germany imported 564,840 tons of coffee from non-EU markets, worth 1.99 billion EUR (equivalent to 2.1 billion USD), down 13.2% in volume and down 22.4% in value over the same period last year. Germany reduced coffee imports from many extra-bloc markets, except for Vietnam and Honduras...

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