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MILAN – Robusta coffee futures rebounded on Thursday, 27 November. In London, the contract for January delivery of the ICE Robusta was up by $26, closing at $4,539. The most traded contract for March delivery closed up $12 at $4,389. Robusta prices were once again supported by the weather in Indochina, with tropical storm Koto heading towards southern Vietnam and expected to reach the Central Highlands early next week.
Last week’s heavy rainfall delayed the harvesting and processing of beans. According to Bloomberg, the bad weather has brought flooding to a number of small plantations in Dak Lak, also causing some trees to fall.
The Vietnamese domestic market remains subdued due to the unstable weather.
According to Reuters, farmers in the Central Highlands sold beans at 110,500 dong to 111,500 dong (USD4.19 to USD4.23) per kg, down from last week’s 111,500 dong to 113,500 dong range.
Traders attributed the decline to the Trump administration’s decision to remove 40% tariffs on Brazilian coffee imports.
“Concerns over Vietnam’s delayed harvest and potential rains from an approaching storm kept prices from falling further,” said a trader in the coffee belt quoted by Reuters, adding the cherry-picking process in the Central Highlands is accelerating.”
New York was closed yesterday for the Thanksgiving holiday. On the statistics front, it should be noted that certified ICE Arabica stocks rose further, on 26 November, to 408,939 bags, after falling below the 400,000 bag threshold last week.
Most of the certified lots (89,184 bags) come from Mexico, followed by Honduras (51,669), Nicaragua (50,814), Peru (46,230) and Tanzania (41,656). Most of the stocks (325,594 bags) are located in the Belgian port of Antwerp.
