MILAN – The upward trend in coffee futures continued Thursday, with July ICE robusta coffee gaining an additional $38 in yesterday’s session, closing at a new all-time high of $4,304. The challenging situation in Vietnam and other Asian producing countries led to further strong gains over the past two days.
Arabica futures also experienced a significant increase, with New York rising by 625 points over the past two sessions, closing at 228.10 cents on Thursday.
Ice Arabica certified coffee stocks were seen to increase by 8,820 bags yesterday, to register these stocks at 661,492 bags, with 99.72% of these certified stocks being held in Europe.
Premiums for robusta coffee in Vietnam surpassed $1,000 per ton for the first time this week, while conditions in Vietnam’s coffee belt remain hot and dry.
Local prices in Vietnam have rallied to an all-time high this year as farmers and middlemen continue to hold onto beans so they do not miss out on better deals after a weak 2023 to 2024 harvest, report local sources.
That made it tougher for exporters to source supply and sparked a record wave of defaults on existing contracts.
“We can’t tell when prices will peak,” said Tran Thi Lan Anh, deputy director of Vinh Hiep, a major Vietnamese exporter. Farmers and middlemen expect the cost of beans could reach as much as 150,000 dong (S$8) per kilogramme, up from the current level of around 130,000 dong, she added.
In Brazil, harvest is finally shaping, with more and more farms entering the process of picking. “We expect better volumes to flow soon,” said a broker quoted by Reuters, adding he does not expect fast selling of fresh coffee.
