MILAN – Arabica coffee futures in New York rose strongly on Thursday and Friday. ICE Arabica’s main contract for December delivery surged 1,100 points in two days to close the week at $1.709, after reaching a 6-1/2-week intraday peak of $1.7135. In London, the main contract for January 2024 delivery rose by $44 on Friday (+1.9%) to $2,372 a metric ton.
Coffee futures prices are seeing support as current inventories continue to linger at record lows. ICE-monitored Arabica certified stocks Friday fell to a 24-year low of 360,009 bags.
The latest Commitment of Traders report from the New York Arabica market has seen the Non-Commercial Speculative sector switch their net short position within the market over the week of trade leading to Tuesday 31st. October 2023 to register a new long position of 2,327 lots, which is the equivalent of 659,694 bags.
This net long position has most likely been increased further following the period of overall firmer trade that has since followed.
Meanwhile, Robusta coffee inventories were at 4,043 lots, mildly above the contract low of 3,374 lots posted on August 31.
Farmers in top Robusta producer Vietnam started to pick beans this week, although supplies remained limited, traders said on Thursday.
Dealers said logistics problems in Brazil had prompted roasters to turn to exchange stocks. The flow of coffee from top grower Brazil, however, improved in October to 4.16 million bags, 25% more than a year before, according to preliminary reports.
Weather conditions are good in Brazil. According to Forecaster Maxar Technologies, the country’s main coffee-growing areas will get moderate rainfall over the week, boosting soil moisture that promotes cherry growth and increased coffee yields.