World coffee prices this weekend, robusta fluctuated strongly and increased sharply on the London floor beyond all predictions, arabica recovered slightly.
At the end of the weekend trading session (July 7), the price of robusta coffee on the ICE Futures Europe London exchange increased sharply. The price of robusta coffee futures for September 2023 delivery increased by 111 USD, trading at 2,621 USD/ton. The price of November delivery increased by 69 USD, trading at 2,475 USD/ton. The average trading volume was high.
The price of Arabica coffee on the ICE Futures US New York exchange for September 2023 delivery continued to adjust slightly, up 0.45 cents, trading at 160.9 cents/lb. Meanwhile, the December 2023 delivery increased 0.4 cents, trading at 160.05 cents/lb. Trading volume increased.
 |
| Domestic coffee prices increased sharply by 1,800 - 1,900 VND/kg in some key purchasing localities during the weekend session (July 8). (Source: praguemonitor) |
The inventory level managed by ICE – London has been receiving “bad news” continuously, falling continuously, down to 62,130 tons on July 6, and on July 7, it decreased by another 2,250 tons to 59,880 tons. Experts say that the report of a sharp decrease in ICE inventory is sometimes an opportunity for speculators to push futures prices up to make a profit due to concerns about supply shortages.
Domestic coffee prices increased sharply by 1,800 - 1,900 VND/kg in some key purchasing localities during the weekend session (July 8).
Unit: VND/kg. (Source: Giacaphe.com) |
Shortage of supply in Vietnam, the world's largest robusta grower, is seen as the main driver for the recent sharp increase in prices.
According to Bloomberg , the US Climate Prediction Center has confirmed that the extreme weather phenomenon El Niño (hot and dry weather) has returned, with the level forecast to be from moderate to strong. This threatens the supply of major coffee growing areas such as Vietnam and Indonesia.
Supply is decreasing, meanwhile, the economic recession has caused consumer demand to switch to using robusta beans to blend with arabica or completely replace arabica because of the increasingly high price.
In addition, the cost of planting has also been pushed up in recent times due to the increase in fertilizer and gasoline prices. The combination of these factors has caused coffee prices to set a record in recent times. Traders believe that at present, coffee prices will remain high and show no signs of decreasing. Although prices have been increasing continuously, exporters and farmers have not benefited much. For farmers, they have sold out their goods in advance. As for exporters, due to high financial costs, they do not have the capital to import goods in the previous period.
Source
Comment (0)