Increased supply impacts coffee prices

The strong growth prospects in Robusta coffee supply in the world's two largest producing countries, Brazil and Vietnam, have had a direct impact on Robusta coffee prices recently.

At the end of the trading session on May 27, the MXV-Index decreased by 0.5% to 2,191 points.

According to the Vietnam Commodity Exchange (MXV), selling pressure was very strong in the world raw material market in yesterday's trading session.

Eight out of 10 metals closed in the red, with COMEX copper reversing and falling 2%. Red also spread across the industrial materials market. The MXV-Index closed down 0.5% at 2,191 points.

Metal price list for trading on May 27.

For the precious metals group, silver prices continued to lose 0.89% at the end of the session, falling to $33.31/ounce. Meanwhile, platinum prices also fell 0.84% ​​to $1,079.3/ounce.

According to MXV, on the one hand, declining investment demand and on the other hand, the increasing strength of the USD have caused silver prices to adjust in the short term. Currently, investors are quite cautious ahead of the US Federal Reserve's June policy meeting.

Meanwhile, the MXV-Index of industrial materials recorded a slight decrease. Notably, the prices of the two coffee commodities were clearly differentiated. Specifically, the Arabica coffee contract for July delivery on the ICE US exchange increased slightly by 0.19% to 7,974 USD/ton.

In contrast, the July Robusta coffee contract on the ICE EU exchange fell 1.96% to $4,696/ton - the lowest level in the past 7 weeks.

Industrial raw material price list on trading day 27-5.

The latest forecasts from Conab and USDA both show strong growth prospects for Robusta coffee supply in the world's two largest producing countries, Brazil and Vietnam, which has had a direct impact on Robusta coffee prices recently.

Coffee prices are also under significant pressure as ICE inventories continue to rise. Robusta inventories monitored by ICE hit an eight-month high of 5,438 bags at the end of last week and remain high at 5,428 bags. Meanwhile, Arabica inventories rose to 892,468 bags on Tuesday, a three-and-a-half month high, adding to the pressure on prices.

Source: https://hanoimoi.vn/nguon-cung-tang-tac-dong-den-gia-ca-phe-703748.html