Coffee price today 5/23/2023
World coffee futures prices on the London floor suddenly turned sharply down as concerns about scarce supply continued to rise. Therefore, this decline is likely due to profit-taking.
According to the latest report of the Foreign Agricultural Service (FAS) under the US Department of Agriculture (USDA), Indonesia's robusta production in the 2023/2024 coffee crop year is estimated to decrease by 18% compared to the previous crop year, down to 9.7 million bags, the lowest level in 10 years due to excessive rain.
Indonesia's new crop of robusta coffee in 2023-2024 is expected to produce less than 10 million bags, the lowest level in 10 years. Meanwhile, according to data from the Cepea Research Center at the University of São Paulo, Brazil, Brazilians have harvested approximately 30% of the new crop and are in no hurry to sell despite the favorable exchange rate.
In addition, ICE London inventories recorded a decrease of 0.24% to 82,610 tons, as of May 22. The above information contributed to supporting the price increase of robusta coffee.
Arabica coffee prices continued to decline amid positive signs about supply this year. According to the latest FAS report, Colombia's Arabica production in the 2023/2024 coffee crop year is estimated to increase by 2% compared to the previous crop year, reaching 11.6 million bags due to favorable crop development. The information contributed to the downward pressure on Arabica coffee prices.
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| Domestic coffee prices today, May 24, decreased by 700 VND/kg in some key purchasing localities. (Source: YouTube) |
At the end of the trading session on May 23 on the international floor, the price of robusta coffee on the ICE Futures Europe London floor turned down sharply. The price of robusta coffee futures for delivery in July 2023 decreased by 72 USD, trading at 2,557 USD/ton. The price of delivery in September decreased by 62 USD, trading at 2,510 USD/ton. Trading volume was above average.
Arabica coffee prices on the ICE Futures US New York exchange continued to fall. The July 2023 delivery contract fell 1.75 cents, trading at 187.45 cents/lb. Meanwhile, the September 2023 delivery contract fell 1.7 cents, to 185.20 cents/lb. Trading volume increased.
Coffee market information
Domestic coffee prices today, May 24, decreased by 700 VND/kg in some key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
The US dollar edged up slightly as investors awaited fresh data to gauge whether the US Federal Reserve (Fed) is likely to continue raising interest rates, while also monitoring news on discussions surrounding the US debt ceiling.
The minutes of the Fed's May meeting, which will be released later on May 24, will provide investors with more data to predict the agency's upcoming monetary policy.
In the robusta coffee market, technical indicators are showing that the bullish momentum is still there. However, the market is in the overbought zone, at a high of 72.19%. In the short term, the price is expected to have a slight upward momentum to test the 2630 - 2650 zone and the possibility of selling to take profit for technical adjustment. The price zone of 2540 - 2580 is the near support zone of robusta prices.
Technical analysis on the Arabica floor is showing neutral signals, the price trend is not clear. It is expected that in the short term, Arabica coffee prices will fluctuate and accumulate within the range of 185 - 190. Arabica coffee prices need to touch and maintain above 190 to have a chance to increase further. On the contrary, 180 - 182 is the near support zone of the price, if it loses the base of 180, it may trigger strong selling pressure.
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