MILAN – Following four consecutive sessions in black, the London Robusta market receded on Wednesday. The main contract for May delivery fell 1.2% to $3,315 a ton. The supply situation in Vietnam remains extremely tight, with local prices hitting ever higher records.
Farmers in the central highlands, Vietnam’s largest coffee-growing area, are selling beans COFVN-DAK for 93,000-94,200 dong ($3.75-$3.80) per kg, up from 90,400-92,000 dong range last week, reports Reuters.
Traders offered 5% black and broken-grade 2 robusta COFVN-G25-SAI at a premium of $550-$650 per ton to the May contract.
“The situation remains the same… supplies are almost empty when demands are strong,” said a trader based in the coffee belt quoted by Reuters. “Domestic prices are reaching the record high of 100,000 dong ($4.03) per kg very soon.”
In New York, May Arabica coffee closed down 65 points at 182.40 cents per lb, on improved crop prospect in Brazil and a rebound in the stock market’s inventories.
Ice Arabica certified stocks climbed yesterday to an 8-month high of 544,766 bags, of which 286,563 from Brazil and 117,501 from Honduras. ICE Robusta coffee inventories rose to a 7-week high Wednesday of 2,859 lots.
In its latest report, Rabobank foresees that the global coffee balance sheet will record a 4.5 million bag surplus in coffee year 2024/25.
The forecast is based on improved production figures that are anticipated to come from both Brazil and Colombia.
Dutch multinational banking and financial services company pegs 2023/24 global coffee production at 171.1 million bags versus global coffee demand at a 170.6 million bags, with a marginal surplus of 500,000 bags for this year.
