MILAN – Coffee markets fell sharply on Thursday reversing the gains posted earlier in the week. Both markets suffered heavy losses, particularly on the Arabica front. In New York, the contract for May delivery lost nearly 23 cents (-5.6%), plunging to 387.15 cents plunging to 387.15 cents.
London also fell into negative territory, with the main (May) contract losing $216 (-3.8 percent) to settle at $5,427.
Positive weather forecasts from Brazil’s coffee belt have sparked long liquidations in the coffee markets. According to the meteorological service Somar, the hot and dry weather expected for the rest of this week will give way to rainy days from next week, which should ease the drought.
Precipitation is also in sight in the central highlands of Vietnam, where it is expected to rain every day during the coming week.
According to the Vietnam Customs Authority, exports rose by 5.24% year-on-year to 2,816,667 bags in February.
However, cumulative exports for the first five months of the 2024/25 coffee year remain well below the same period in 2023/24.
In fact, between October and February, Vietnam exported 8,983,334 bags, 29.6% less than last year.
Good news, on the other hand, came from Colombia, where production rose 42% to 1.36 million in February, according to the National Federation of Coffee Growers.
Production over the last 12 months (March 2024-February 2025) also rose by 42% to 14.79 million, the highest level in 29 years.
Colombian exports reached 1.18 million in February, up 14%. In the last 12 months, exports totalled 12.68 million, 17% more than in the same period last year. About 40% of Colombia’s coffee exports go to the USA.
