MILAN – Coffee futures prices surged in the last part of the past week. In last Friday’s session, New York rose to its highest levels since the first decade of August. On September 11th, Ice Arabica’s main contract for December delivery opened the week with a 425-point gain breaking the 150 cents resistance to end the day at 152.85 cents per lb.
The two following days, the contract was down by 85 and 5 points respectively to close on Wednesday at a weekly low of 151.95 cents.
The upward trend resumed in the last part of the week. Between Thursday and Friday, the benchmark price posted a 720 gain and ended the week at 159.15 cents, an increase of 7.1% over the previous Friday.
London closed higher on four out of five sessions to end Friday at US$2,556, up 6.2% from the previous week.
The New York market was bolstered by a weakened dollar. On Friday, Brazil’s currency rose by two weeks compared to the US dollar. Both markets are still experiencing difficulties due to low levels of certified stock.
ICE-monitored Arabica coffee inventories on Tuesday dropped to a 10-month low of 442,548 bags. ICE-monitored Robusta coffee inventories on August 31 fell to a record low of 3,374, although they have since rebounded slightly to a 4-week high Friday.
Meanwhile, the European Coffee Federation (ECF) have reported that the port warehouse coffee stocks held within reporting warehouses in Belgium, Germany, France, Italy and Spain, to have registered a 15.16% decrease during the month of June 2023 from the same month in the previous year to total 693.851 tons, or 11,564,183 bags at the end of the month.
The stocks are reported as 4,621,017 bags Robusta coffee, 3,019,700 bags Natural Arabica coffee (Including Brazil semi-washed) and 3,923,467 bags Washed Arabica coffee.
Stocks include ICE certified stocks as well as non-exchange stocks. These stocks do not include necessarily include the privately held, unreported stocks from the industry, onsite inventory, nor the in-transit bulk container stocks and the stocks being held within non-reporting warehouses throughout Europe.
The data are supplied by warehousing and port organisations in Europe covering the ports of Antwerp, Hamburg, Le Havre, Barcelona, Trieste, Genoa, Napoli, Tallin, London, Felixstowe, and Bremen (partly).