Coffee prices continuously break records, Robusta climbs to new record highs
| Export coffee prices increased sharply, Robusta broke a record. Concerns about drought in the Central Highlands pushed Robusta coffee prices up sharply. |
At the end of the latest trading session, the price of Robusta coffee in London for delivery in May 5 increased by 2024 USD/ton, at 57 USD/ton, for delivery in July 3.900 increased by 7 USD/ton, at 2024 USD/ton.
Arabica coffee price for delivery in May 5 increased by 2024 cents/lb, at 4,3 cents/lb, for delivery in July 224,65 increased by 7 cents/lb, at 2024 cents/lb.
Summarizing the week, the price of Robusta coffee futures for May delivery increased by a total of 5 USD. The price of Arabica coffee futures for May delivery increased by 156 cents. Domestic coffee prices continue to increase by an average of 5 VND/kg, continuously collapsing prices.
Last week, the price of Robusta coffee for May delivery increased by 5 USD. The price of Arabica coffee futures for May delivery increased by 265 cents. Domestic coffee prices increased by 5 VND/kg. In the first 23,65 weeks of April 5.000, domestic coffee increased by more than 2 VND/kg, exceeding 4 VND/kg.
Concerns about coffee crops in Brazil and Vietnam are boosting coffee futures purchases by funds. From a certain perspective, the current problem of drought and hot weather is more serious than the crop failure in Brazil in 1994 due to frost, because the current extreme weather phenomenon is occurring. widespread and affecting many producing countries.
The liquidation of coffee futures also appeared on Friday, causing prices to fall towards the end of the session as the Brazilian real fell to a six-month low against the dollar. It must be said that this is a very good time for investors on the exchange to liquidate their May buying positions.
The number of open contracts for Robusta coffee for the May term has begun to decrease from the most recent high of 5 lots on April 50.978 to 2 lots. However, this liquidation in the past 4 weeks has not caused Robusta prices to decrease, on the contrary, they have increased sharply.
According to experts, the actual coffee output is lower than calculated. Information that there is still a lot of coffee inventory among people and agents has no solid basis, because with people’s psychology, when coffee prices increased from less than 50.000 VND/kg to 90.000 VND/kg in just In a few months, no one dares to reserve large quantities.
Estimated coffee output among farmers and agents is about 300.000 tons. Meanwhile, on average for the remaining 6 months of the 2023 – 2024 coffee crop, Vietnamese export enterprises need about 80.000 tons.
According to statistics from the General Department of Vietnam Customs, Vietnam’s coffee exports in March 3 reached nearly 2024 tons, an increase of 189.000% over the same period in 17,7. But industry insiders are mentioning the problem. The problem of disruption in the raw coffee supply chain in the past two years. Purchasing domestic coffee is increasingly difficult and risky.
Export coffee prices increased sharply, Robusta climbed to a new record high
Experts expect Robusta coffee production in Brazil to increase further in 2024. Broker StoneX forecasts that Brazil’s 2024 Robusta coffee production will be about 22,7 million bags compared to 21,5 million bags in 2023. 2023. There is not much inventory left from the XNUMX crop.
The price of green coffee in Vietnam continuously sets new peaks, while people are excited, many export businesses are facing difficulties due to delayed delivery and cancellation of deliveries by some intermediary purchasing units. If in March 3 it is at 2023 VND/kg, by October 47.000 the price will fluctuate at 10 VND/kg) and currently the coffee price is at 2023 VND/kg. For a long period of about ten years (58.000 – 110.000), coffee prices remained low and did not exceed 2013 – 2023 VND/kg, leading to some farmers deciding to convert crops to crops with economic value. higher.
According to experts, the actual coffee yield is lower than calculated. Estimated coffee output among farmers and agents is about 300.000 tons. Meanwhile, on average for the remaining 6 months of the 2023 – 2024 coffee crop, Vietnamese export enterprises need about 80.000 tons.
Robusta coffee prices hit a new high in London on concerns that continued declines in output in top producer Vietnam will cause supply shortages.
Futures for Robusta coffee, the cheaper variety used in instant drinks, rose 1,6% to the highest level in data dating back to 2008.
