MILANO – Coffee futures markets ended mixed on Tuesday in a slow session characterised by limited trading ranges. New York recovered 145 points after Monday’s losses to end the day at 243.60 cents, while London lost $11 to settle at $4,572. Despite last week’s rainfall in top Arabica producing state of Minas Gerais, scarce rain in Brazil continues to be a problem and is helping to support prices.
There are also concerns about the logistical situation. According to I. & M. Smith, Brazilian key export ports, Santos and Vitoria, continue to report container and vessel availability constraints, shipping route alterations resulting in extended shipment delays.
Meanwhile, the most recent Cot (Commitment of Traders) meanwhile indicates that speculators slightly increased their long positions in the New York market in the week to 9 July.
On the Robusta front, the market continues to be affected by the sluggish pace of Vietnam’s exports.
The latest Commitment of Traders report from the London robusta coffee futures market has seen the Speculative Managed Money sector increase their net long position by 20.99% within the market over the week of trade leading to Tuesday 2nd July 2024 to register a new net long position of 38,410 lots, which is the equivalent of 6,401,667 bags.
The Uganda Coffee Development Authority (UCDA) reported that the country’s exports grew by 18.24% year-on-year in June to reach a total of 667,037 bags.
Arabica and Robusta showed opposite trends. Robusta exports increased by 25.51% to 614,486 bags, while Arabica exports decreased by 29.51% to 52,551 bags.
This brings the total for the first 9 months of the 2023/24 coffee year to 4,158,244 bags, virtually unchanged (-0.34%) from the same period of 2022/23.
For the coming coffee year (2024/25), Uganda expects a production of 6.9 million bags, of which 5.89 million of Robusta and 1.05 of Arabica.
