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MILAN – The rally continues in New York: in yesterday’s session, Tuesday 14 October, the contract for December delivery of Ice Arabica coffee futures gained 3.8%, ending at 399.65 cents, the highest closing price in three weeks, after reaching a high of 405.25 cents during trading. Arabica futures were pushed up again by the persistently dry weather conditions in many areas of Brazil’s coffee belt, where rainfall last week was less than half the historical average.
Ice Robusta bucked the trend, with the January contract losing $47 to close at $4,420. Contributing to the downward trend on the London terminal were positive weather forecasts for Vietnam, particularly for the province of Dak Lak, the country’s largest production area, where abundant rainfall is expected until 20 October, which will favour the final development of the new crop.
The 140th session International Coffee Council – the highest authority of the of the International Coffee Organization’s (ICO) – is currently underway at the Chamber of Commerce and Industry of Cortés in San Pedro Sula, Honduras.
In addition to the renewal of Office holders and committees and other internal matters relating to the Organisation’s functioning, the meeting – which began on Monday and will conclude on Friday, 17 October – will focus on the ratification and entry into force of the new ICO 2022 Agreement, ICO activities, the state of the global coffee market, and other issues affecting the sector.
The programme also includes the seventh edition of the CEO & Global Leaders Forum, an event designed to promote a sector-wide dialogue with individuals from across the coffee value chain and featuring the participation of top executives, producers, traders, roasters, retailers, high-profile policy leaders, development partners, and members of civil society.
Commenting on September’s export figures, Márcio Ferreira, President of Cecafé, reiterated that Brazil cannot afford to lose the U.S. market, which remains the main destination for Brazilian coffee exports in the year to date.
He noted that, following favourable signals from President Trump during the United Nations General Assembly and in a call with President Lula, the Brazilian government should act swiftly.
“The Executive Branch must act urgently on behalf of the country. There is no longer any hesitation about diplomatic dialogue, and Brazilian exporters have already faced significant losses after just two months of these tariffs. Our U.S. import partners are requesting postponements or even cancellations of contracts because of the sharp rise in costs brought by these measures,” he said.
Ferreira added that, following the conversation between the Presidents of Brazil and the United States, Cecafé requested a meeting with Brazil’s Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, who heads the Interministerial Committee on Economic and Trade Negotiations and Countermeasures, to reinforce the two countries’ close ties within the coffee sector.
“We are the world’s largest coffee producer and exporter, while the United States is the largest importer and consumer.We account for more than one-third of all coffee traded in the U.S., where 76% of the population drinks coffee. We cannot downplay the importance of the U.S. market for our coffee, nor can they do without our product, as no other supplier can match our volume and quality.
The private sectors of both countries have done, and continue to do, their part, so much so that coffee was included on a list of potential tariff exemptions. But for that to happen, there must be active bilateral trade relations. In other words, it is high time to act,” he urged.
