Global robusta futures reach 11-year high on dry conditions in Vietnam speculative buying

Published 2023년 4월 17일

Tridge summary

Robusta and Arabica coffee futures saw a decrease on Friday, following a recovery in the dollar index and hitting multi-year highs and six-month peaks respectively. The market's support includes tight supplies, particularly in Vietnam, concerns over Vietnam's 2023/24 crop due to dry conditions, and increased odds of an El Nino weather event that could impact coffee crop production. Additionally, raw sugar and cocoa prices hit elevated levels due to anticipated adverse weather conditions affecting major producers.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

MILAN – Robusta coffee futures eased Friday from multi-year highs reached on Thursday. Arabica futures were also marginally down from a six-month peak reached the previous day. A recovery in the dollar index from an 11-1/2 month low sparked long liquidation in both markets. July Robusta coffee in London settled $50 up, or +2.1%, at $2,382 a tonne on Thursday after setting a 11-1/2-year high of $2,401. Analysts said the market was supported by tight supplies, particularly in top Robusta producer Vietnam. Dealers said there was also concern that dry conditions in Vietnam could dent the outlook for the 2023/24 crop, as reported by Reuters. Moreover, the Association of Indonesian Coffee Exporters and Industries reported recently that Indonesia, the world’s third-largest Robusta producer, would see its 2023 coffee production fall 20% on-year to 9.6 million bags due to damage from excessive rainfall across its growing regions. Ice Arabica’s most active contract for July delivery fell ...

Source: Comunicaffe