COFFEE PRICE TODAY on July 9, 2024- Increased sharply due to global output risks

COFFEE PRICE TODAY ON JULY 9, 2024

 Increased sharply due to global output risks

September Arabica coffee traded on Monday closed up 5.45 cents/pound and Robusta coffee closed up $163 at $4,348/ton.

Robusta ICE Futures Europe 

Arabica ICE Futures US 

This is the mark where Arabica coffee price reached its highest level in the past 1 and a half weeks and Robusta also reached its highest level in more than 1 month. During the session, Robusta coffee price reached its highest level of 4,390$/ton, which is close to the high level. The all-time high was reached on June 6 at $4,394/ton. It is forecasted that both markets will continue to increase without seeing a stop. In addition to information about drier-than-normal conditions in both of the world's largest producing countries, Brazil is now also entering winter with the threat of cold air columns regularly visiting during the winter. This also makes the market more sensitive to the early cold weather in South America.

The Brazilian state of Minas Gerais received just 1.3 millimeters of rain last week, or 24% of the historical average, meteorological agency Somar Meteorologia reported on Monday. Additionally, the US National Oceanic and Atmospheric Administration (NOAA) said that despite recent rain, some coffee producers in Central America still face moisture shortages after drought at the beginning of the season.

Robusta coffee prices are further reinforced by concerns that excessive drought in Vietnam will damage coffee trees and limit global Robusta coffee production. The market is constantly repeating old information when Volcafe predicted a global Robusta coffee deficit of 4.6 million bags in 2024/25, although smaller than the deficit of 9 million bags. in the 2023/24 season but this is the fourth consecutive year of Robusta coffee deficit.

Coffee harvest progress reported to be fast in Brazil does not appear to have quenched the market's thirst for buying for either type, as it is clear that market prices are still rising post-harvest in Indonesia, post-harvest. April harvest with about 20% output of Colombia (Mitica crop) and now the harvest in Brazil is almost finished with Robusta and more than 50% Arabica.

News from a Japanese media agency - Nikkei Asia reports and writes that: World coffee prices increased by about 20% last quarter amid extreme heat in major coffee growing areas in Europe. ASIAN. Standard Robusta coffee prices in London at the end of June were 18.1% higher than at the end of March. Arabica coffee futures prices also increased by 20.6%.

The latest COT Position Commitment report from Traders from the London Robusta coffee market shows that Fund Managers have slightly reduced their net long positions by 2.19% as of Tuesday 2nd July 2024. Currently, the number of new registered net buying positions of this component is 31,745 lots, equivalent to 5,290,833 bags.

The latest Traders Commitment report from the New York Arabica coffee market will be published later today, July 9, due to the holiday that took place last week.

Based on Brazil's forecast of a new crop of 69.50 million bags, the report now indicates that to date, approximately 40.31 million bags of new crop coffee have been harvested. made up of about 17.16 million bags of Conillon Robusta coffee and about 23.15 million bags of Arabica coffee. Weather conditions are expected to remain cool and dry for the remainder of this week, with temperatures forecast to be mild and no unusually low temperatures across Brazilian coffee regions during this period. this paragraph.

Inventories of certified graded Arabica coffee held on the New York market were said to have decreased by 9,270 bags last Friday, placing them at 811,359 bags.

The contract difference between the London and New York markets after converting to cents/pound is currently around 39.07 Usc/Lb with the lower level on the Robusta side. This is also the difference in value that Robusta products are still considered very high.

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