Coffee Prices Today August 16, 2022: Inventories of Arabica standards increased while standard inventories on the London floor were not offset. Currently, the supply in the two leading Robusta producing countries, Brazil and Vietnam, is very tight.
Coffee Prices Today August 16, 2022 in the world
At the end of the latest trading session, the price of Robusta coffee in London delivered in September 2022 increased by 4 USD/ton to 2,256 USD/ton, delivered in November 2022 increased by 4 USD/ton at 2,265 USD/ton. Meanwhile on the New York Stock Exchange, the price of Arabica coffee delivered in September 2022 fell 1.1 cents/lb, at 225.5 cents/lb, delivered in December 2022 down 0.85 cents/lb, at 221 .55 cents/lb.
In the first trading session of the week, world coffee prices were mixed. Inventories of Arabica standards increased, pushing prices down slightly, while standard inventories on the London floor were not compensated. Currently, the supply in the two leading Robusta producing countries, Brazil and Vietnam, is very tight.
Besides, over the weekend there was rain in the key coffee growing area of Brazil, alleviating the concern of drought, so Arabica prices decreased slightly. Another factor that also supports Robusta’s strong price increase in recent sessions is the strong buying force of speculators to prepare for the upcoming futures month.
Currently, business performance on the two coffee floors has increased very well. In London last week, the floor price of Robusta increased 10.72% and Arabica New York increased 7.75%. Thus, the price of the two coffee floors by the end of the week has regained what it has lost so far this year, Robusta is only negative 0.79% (-18 USD) and Arabica is down 0.34% (-0). .75 cts/lb).
According to Helena Coffee Vietnam, the domestic price of raw coffee is around 50 million VND/ton, the highest level since 6, 7 years. Sales were weak due to the end of the season. The price of export grade 2 coffee with a maximum of 5% broken black is offered from the same level to plus 20 USD/ton FOB calculated on the trading price in November/22. Thus, compared to the beginning of 2022, an increase of 400-450 USD/ton.
The fact that export prices are now at par and plus has greatly limited the purchasing power of importers. They can’t even collect to put the goods to auction on the floor because at this price they also have to calculate freight, procedures, goods handling fees and financial fees. Perhaps that’s why the inventory of Robusta standards has decreased rapidly in recent days. Brazilian Robusta also cannot be auctioned because the price of Robusta within the country is also very high.
The situation of the world coffee market
The highlight of the week is the report of the US consumer price index ( CPI ) in July at 8.5%, down from 9.1% in the previous month, showing that the anti-inflation results have been positive. , which has led the market to increase bets on the possibility of the Fed raising the base rate by only 0.5% at its upcoming meeting in September, and has supported risk assets such as emerging currencies and commodities. increase strength.
The USDX Index lost 1.82% for the whole week, causing commodity prices, in general, to rise sharply. Many people forecast Brazilian production for the new coffee harvest year to be 55 million bags, others say 61 million, then 63 million and some say up to 71 million bags. The market usually believes in big numbers and the arabica floor seems to be prepared for that sentiment.
Robusta flooring is not the same as arabica. Here, the ups and downs are less because the market is looking at Vietnamese coffee production. If in the 2022/23 crop year, Vietnam is estimated to reach an output of over 30 million bags, the voice on the London floor of Vietnam will still have weight, at least until the end of December 22 because the market has already revealed its share. whether Vietnam’s robusta production is more or less.
Consumers are returning to robusta thanks to its ease of use and low price. In addition, speciality robusta (fine robusta) is currently evaluated not to be inferior to average and above-average quality Arabica coffee.
In fact, the impact of inflation, high input prices, increasing production costs, plus thrifty spending, so Robusta consumption is dominated by that. But it should also be noted that the food industry giants have created a “bullish” market by increasing the price of coffee products on the shelves.