Global coffee prices fell across the board in the final trading session of the week. Brazil’s real extended its rally and selling pressure from the world’s top coffee producer added to the decline in futures prices.
Market information shows that major central banks around the world will strongly adjust interest rates, while the lack of spot buyers in the physical market has negatively affected world coffee prices. The pressure to sell the new crop currently being harvested in Brazil has also caused buyers to switch to more distant delivery months, mainly due to the more significant price difference. The situation is causing coffee futures prices to continue to decline.
At the end of this weekend's trading session, which is also the last session of June, the price of robusta coffee on the ICE Futures Europe London exchange continued to fall sharply. The price of robusta coffee futures for September 2023 delivery decreased by 79 USD, trading at 2,491 USD/ton. The price of November delivery decreased by 83 USD, trading at 2,391 USD/ton. Average trading volume.
The New York Arabica Coffee Futures Exchange continued to decline, with the price of Arabica coffee on the ICE Futures US New York for September 2023 delivery down 2.6 cents, trading at 159.00 cents/lb. Meanwhile, the December 2023 delivery fell 2.15 cents, to 158.10 cents/lb. Trading volume was high on average.
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| Domestic coffee prices continued to drop sharply by VND800-900/kg in some key purchasing locations during the weekend trading session. (source: dallas.culturemap) |
Concerns that central banks will soon raise interest rates due to the complicated and difficult fight against global inflation have caused funds and speculators who have invested in shelters on the two coffee derivatives exchanges to rush to liquidate, pushing coffee prices down.
Inventories on both exchanges began to increase as large funds and speculators showed signs of selling in the coming time. On June 30, robusta coffee inventories certified and monitored by ICE - London increased by 220 tons, or 1.30% compared to the previous two days, to 75,950 tons (equivalent to 1,232,500 bags, 60 kg bags), marking the end of a series of consecutive inventory reductions in London.
Domestic coffee prices continued to drop sharply by 800 - 900 VND/kg in some key purchasing localities during the weekend trading session.
Unit: VND/kg. (Source: Giacaphe.com) |
According to data from the International Trade Center, in the first 4 months of 2023, Japan imported approximately 108,500 tons of coffee, worth 443.18 million USD, down 30.5% in volume and 29.0% in value compared to the same period in 2022.
In the first 4 months of 2023, Japan reduced imports of all types of coffee. Of which, coffee imports, excluding roasted and decaffeinated coffee (HS 090111), decreased by 30.5% in volume and 29.9% in value compared to the same period last year, reaching 105,620 tons, worth 400.36 million USD. The import proportion of this type of coffee accounted for 97.35% of the total volume and 97.45% of the total value in the first 4 months of this year.
Also during this period, Japan reduced coffee imports from all major sources. Of which: Japan imported approximately 36,000 tons of coffee from Vietnam in the first 4 months of 2023, worth 78.23 million USD, down 22.1% in volume and 22.7% in value compared to the same period last year.
However, Vietnam's coffee market share in Japan's total imports increased from 29.62% in the first four months of 2022 to 33.16% in the first four months of 2023, according to the latest report of the Import-Export Department, Ministry of Industry and Trade.
Similarly, Japan reduced its coffee imports from Brazil in the first four months of 2023, down 22.3% in volume and 12.3% in value compared to the same period last year, reaching 32,750 tons, worth over $129 million. Brazil's coffee market share in Japan's total imports increased from 27.02% in the first four months of 2022 to 30.19% in the first four months of 2023.
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