MILAN – Another day of gains for the coffee futures markets. Yesterday, Tuesday 24th September, the Ice Arabica’s contract for December delivery gained 425 points (+1.6%) to close at 267.80 cents, a new 13-year high.
Ice Robusta’s November contract also gained 0.7% to settle at $5,312, not far from last week’s contract highs.
Weather conditions in Brazil and Vietnam continued to keep both markets on edge. Dealers said rains this past weekend in Brazil’s coffee growing regions were likely enough to stimulate the first crop flowering, but follow-up rains will be needed to help fix the flowers into cherries, reports Reuters.
Limiting gains was the news circulating among insiders yesterday – that an announcement on the postponement of the Eudr’s introduction could be imminent.
Meanwhile, Colombia’s National Federation of Coffee Producers reports that production rose by 17% in the first eight months of 2024, and by as much as 20% in August alone.
This brings the total for the last 12 months to 12.53 million bags, a figure not seen since December 2021. Exports in the first 11 months of the current coffee year, on the other hand, rose by 9.35% to a total of 10.819 million bags.
It is important to note that these results have been achieved despite the negative impact of the La Niña in the last two years.
The Federation expects production to grow by a further 15% to 13 million sacks in 2024/25. In a report, the Federation also states that it has renewed an additional 100,000 hectares with new climate-resistant varieties, bringing the total area under coffee cultivation in Colombia to 842,000 hectares.
