Global Robusta coffee prices maintained a prolonged inverse price structure in the near term, while Arabica continued to decline. Demand for spot coffee was very high, so the futures markets. Supply on the London floor continued to be at a record low and there were no new additions recently.
The domestic coffee market today continued to decrease compared to the same time yesterday.
At the end of the weekend trading session on the international futures exchange (August 11), the price of robusta coffee on the ICE Futures Europe London exchange increased and decreased in different directions. The price of robusta coffee futures for delivery in September 2023 increased by 6 USD, trading at 2,672 USD/ton. The price of futures for delivery in November decreased by 17 USD, trading at 2,517 USD/ton. Trading volume increased above average.
Arabica coffee prices on the ICE Futures US New York exchange continued to fall, with the September 2023 delivery contract down 2.10 cents, trading at 157.8 cents/lb. Meanwhile, the December 2023 delivery contract fell 1.95 cents, trading at 157.7 cents/lb. Trading volume was high.
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| Domestic coffee prices today, August 12, continued to decrease by 200 - 300 VND/kg in key purchasing localities. (Source: YouTube) |
Brazilian farmers had sold 41% of their 2023/24 crop so far in early August, slightly below the 45% seen at the same time last year and below the historical average of 46% for the season, according to consulting and analytics firm Safras & Mercados. Meanwhile, Cooxupé, Brazil’s and the world’s largest coffee cooperative, reported that its members had so far harvested more than 70% of their coffee growing areas and that the weather remained favorable, allowing for better drying of beans.
Meanwhile, the Coffee Export Report of the General Department of Vietnam Customs shows that Vietnam's supply is mainly Robusta coffee, reaching 1.81 million bags in July, although down 7.6% compared to the same period last year but up 36.09% compared to the initial estimate of the General Statistics Office of Vietnam.
Domestic coffee prices today, August 12, continued to decrease by 200 - 300 VND/kg in key purchasing localities.
Unit: VND/kg. (Source: Giacaphe.com) |
Overall, the market is negative following monthly export data reports from the world’s leading coffee producing and exporting countries. These export data reports have eased concerns about short- and medium-term supply shortages. This has prompted technical corrections by funds and speculators in the global coffee futures market.
Meanwhile, selling pressure for the new crop continues to increase as Brazilian farmers enter the final stages of the harvest. Notably, there is additional support from the weakening of the Real exchange rate, causing Brazil to sell heavily on the market.
Observers say Brazilian farmers have already harvested 80% of the crop, with the outlook for this season’s output rising 7.5% year-on-year. Coffee supplies from Brazil are expected to flood the market in the near future.
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