MILAN – Coffee futures markets once again skyrocketed in yesterday’s sessions. London broke through the $4,000 mark, while New York posted its fifth consecutive gain. May ICE Robusta coffee closed up $74 at 3,974 after hitting a new all-time high intraday of $4,003. The most active contract for July delivery fared even better, adding $97 to close the day at $3,949.
The New York market was characterised by sharp fluctuations. The front month (May) ranged between a low of 219.30 and a high of 235.45 cents to settle at 231.55 cents, with a 690-point gain over the previous session. July rose 640 points to close at 226.85 cents.
Price hikes in coffee futures were capped by weakness in the Brazilian real, which fell to a 6-1/4 month low against the dollar Monday. A weaker real encourages export selling by Brazil’s coffee producers.
Traders in both coffee futures markets are still keeping a close eye on developments in Brazil and Vietnam
Somar Meteorologia reported Monday that Brazil’s Minas Gerais region received 15.8 mm of rainfall in the past week, or 74% of the historical average, according to Barchart.
Dealers said tight supplies in Vietnam and concerns about the crop outlook in the world’s top robusta producer remained the main supportive factors.
Cocoa futures market were also on the rise yesterday
July London cocoa was up by 2.7% to finish the day at 8,873 pounds per metric ton, after hitting a record high of 8,954 pounds earlier in the session.
July New York cocoa settled up 0.8% at $10,559 a ton, after setting a new intraday peak of $10,738.
