Global Coffee Prices Hit 16-Year High Amid Supply Concerns
Coffee markets in London and New York saw notable increases in their major contracts, driven again by worries over the robust coffee supply from Vietnam.
In London, contracts for May/24 rose by $72 per ton to $3381, and July/24 contracts increased by $57 to $3271.
Contracts for September 24 and November 24 also experienced hikes, reaching $3189 and $3096 after gains of $56 and $55 per ton, respectively.
In New York, the May/24 contract surged by 590 points to $192.20 cents per lb, while the July/24 contract also jumped by 590 points to $189.90 cents per lb.
The momentum continued with the September/24 and December/24 contracts, which advanced by 555 and 540 points to 189 cents per lb and 188.55 cents per lb, respectively.
This rally pushed coffee prices to their highest in 16 years.
Reports highlighted Vietnam’s farmers and exporters withholding approximately 30% to 35% of their crop, anticipating higher prices. This contributed to a dip in exports since February.
Challenges such as the Red Sea issues and heightened demand further compounded the situation.
Brazil’s weather conditions also influenced the market. Minas Gerais received only about half of its usual rainfall, according to Somar Meteorologia.
Despite challenges, Fundação Procafé provided a positive outlook for Brazil’s arabica crop, expecting increased production without oversupply concerns.
Market responses were evident in Brazil’s physical market, where prices increased in several major trading centers.
In Araguari/MG, hard bean type 6 saw a 3.92% increase to R$1060.00, while other regions reported smaller but significant rises.
The peeled cherry type had a price increase only in Campos Gerais, reflecting nuanced market reactions to broader trends.
Stability was observed in Guaxupé/MG and Poços de Caldas/MG, showing diverse global and local factors’ impacts on coffee prices.
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