MILAN – Coffee futures prices ended 2023 on a low note. In New York the most traded contract for March delivery lost 970 points (-4.90%) and closed the year at 188.30 cents per lb, its lowest level since December 12th. The benchmark recorded a 13.2% increase compared to January 3rd 2023.
In London, the main contract for March delivery was $95 dollar down to $2841 per MT. Robusta futures prices gained 53.4% over the last year, boosted by a decline in exports from top producer Vietnam and strong demand from the industry.
A favourable outlook for the 2024/25 crop in top grower Brazil sent Arabica prices down in the last session for 2023. Forecast of rains in the first couple of weeks of 2024 have eased concerns about dry conditions and triggered long liquidation in coffee futures.
The latest Commitment of Traders report from the New York market has shown the Non-Commercial Speculative sector decrease their net long position by 6.99% within the market over the week of trade leading to Tuesday 26th December 2023, to register a new long position of 22,183 lots.
ICE Arabica’s certified stocks were seen to decrease by 7,175 bags on Friday, to register these stocks at 251,224 bags. There was an increase of 4,544 bags in the number of bags pending grading to the exchange; to register 14,039 bags pending grading on the day.
Coffee exports from Vietnam are estimated to have fallen 9.6% in 2023 from a year earlier to 1.6 million metric tons, government sources reported on Friday.
Vietnam’s Ministry of Natural Resources and Environment said Wednesday that prolonged dryness and water shortages may hit Vietnam’s Central Highlands, the country’s main coffee growing region, between March-June.
The Indonesian government trade data from Sumatra, the leading coffee producing island within Indonesia, has reported that the islands Robusta coffee exports for the month of November were 742,334 bags or 77.45% lower than the same month last year, or a total of 216,039 bags.
This contributes to the islands cumulative Robusta coffee exports for the first eight months of the current April 2023 to March 2024 coffee year to be 1,749,147 bags or 49.22% lower than the same period in the previous year, at a total of 1,804,328 bags.
