Robusta coffee reaches new record above US$4 thousand/ton on UK stock exchange and Arabica reaches 240 cents/lbp in the US

Raw Common Coffee Bean
United Kingdom
Published Apr 18, 2024

Tridge summary

Coffee prices are hitting record highs due to global supply concerns, notably from Vietnam, where adverse weather conditions linked to El Niño have led to a significant drop in production from the usual 31 million bags to 26 million bags. This situation is exacerbated by the reluctance of some producers to deliver at previously negotiated lower prices, further boosting the market. The uncertainty in Vietnam's coffee market is causing significant price instability, with Robusta coffee prices in London notably increasing by over US$ 200 per ton. The market is also reacting to climate uncertainties and the upcoming Brazilian harvest, with expectations of continued high prices until the situation in Vietnam shows signs of improvement.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Renewing record after record, the coffee producer continues to experience days of great emotions for prices. This Wednesday (17), in the early hours of trading, Robusta was already trading at US$4,000 per ton at the London terminal and Arabica showed signs of seeking a value of 240 cents/lbp in New York. For some time now, the coffee market has priced based on concerns about global supply. The "hot spot" is Vietnam, which already registered a decline in the last cycle, and does not have such positive expectations for the next one. For the producer, who is taking advantage of the good moment in some way, the question remains: How long will this continue and more than that, how long will Arabica keep up with the appreciation? Vietnam is characterized by producing 31 million bags per year. In the last cycle, due to adverse weather conditions, production did not exceed 26 million bags and the current moment is one of apprehension regarding the next cycle. The current problems are a ...
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