Coffee prices skyrocket across all exchanges, robusta green for 7 consecutive sessions, robusta exports from Brazil increase sharply

Vietnam's coffee exports in the first half of October reached 17,838 tons (about 300 thousand bags), bringing the first 9.5 months of the year to a total of 1,270,818 tons (equivalent to 20.18 million bags), down 8% year-on-year, according to preliminary data from the General Department of Vietnam Customs.

World coffee prices increased sharply on all domestic and international exchanges. In particular, the trading volume of Arabica coffee on the New York floor increased sharply.

Thus, Robusta coffee futures prices have increased for 7 consecutive sessions for spot delivery, while inventory reports continue to decline and the price difference in Southeast Asia is currently at a very high level, requiring adjustment and rebalancing of prices in producing countries after the first delivery notice date (FND).

Inventories continued to decline over the past five days, with arabica inventories down more than 1,000 tonnes and robusta down 2,100 tonnes.

Domestic coffee prices today October 20 increased by 1,200 VND/kg in some key purchasing localities. (Source: atticacoffee)

At the end of the trading session on October 19, the price of robusta coffee on the ICE Futures Europe London exchange for November 2023 delivery continued to increase sharply by 76 USD, trading at 2,497 USD/ton. The January 2024 delivery period increased by 67 USD, trading at 2,402 USD/ton. Average trading volume.

Arabica coffee prices on the ICE Futures US New York exchange for December 2023 delivery increased by 5.9 cents, trading at 163.95 cents/lb. Meanwhile, the March 2024 delivery price increased by 4.15 cents, trading at 161.80 cents/lb. Trading volume increased very high.

Robusta coffee traded on the ICE Futures - London exchange opens at 16:00 and closes at 00:30 the following day, Vietnam time. Arabica coffee on the ICE Futures US exchange (New York exchange) opens at 16:15 and closes at 01:30 the following day, Vietnam time.

Domestic coffee prices today October 20 increased by 1,200 VND/kg in some key purchasing localities.

Average price	Change
USD/VND exchange rate	24,340	+ 20
DAK LAK	58,400	+ 1,200
LAM DONG	57,600	+ 1,200
GIA LAI	58,200	+ 1,200
DAK NONG	58,200	+ 1,200

Unit: VND/kg.

(Source: Giacaphe.com)

Coffee prices surged as money shifted away from stocks. Rising risk aversion pushed crude oil and long-term U.S. Treasury yields to new highs, while stocks fell amid escalating conflict in the Middle East.

The current supply and demand factors are more positive for robusta than arabica, in general, the El Nino phenomenon can affect robusta production in Asian countries, especially in Indonesia and Vietnam.

El Nino causing heavy rains during the upcoming harvest period in Vietnam is very worrying. Meanwhile, Arabica output in Brazil in 2024 is still maintained.

The International Coffee Organization (ICO) still forecasts a coffee deficit in the new 2023/24 crop year of 7.26 million bags, even as global production is forecast to increase by 1.70 million bags this season.

Vietnam's coffee exports in the first half of October reached 17,838 tons (about 300 thousand bags), bringing the first 9.5 months of the year to a total of 1,270,818 tons (equivalent to 20.18 million bags), down 8% year-on-year, according to preliminary data from the General Department of Vietnam Customs.

Coffee exports fell 10.9% in September compared to the previous month, according to data released by the Brazilian Coffee Exporters Council (Cecafé), as logistics and pricing issues discouraged export sales. However, robusta exports from Brazil have been soaring for most of the past year due to a global supply crunch and will continue to grow until the end of 2023, according to StoneX, a consultancy.

Source: https://baoquocte.vn/gia-ca-phe-hom-nay-20102023-gia-ca-phe-vot-len-tren-khap-cac-san-robusta-xanh-san-7-phien-lien-tiep-xuat-khau-robusta-tu-brazil-tang-manh-246767.html