MILAN – Coffee futures markets surged to new highs, after inching down on profit-taking in the first session of the week. Yesterday, Tuesday 17 September, both markets went up again, largely recovering the previous day’s losses. In London, the main contract for November delivery of the Ice Robusta closed up $57, at $5,303, yet another record high for the 10-T contract.
In New York, Ice Arabica’s benchmark contract (December) added 595 points, ending the day at 264.50 cents, a 13-year high.
Intraday levels, however, remained below the historic highs set on Monday, when London and New York reached $5,486 and 271.80 cents, respectively, during trading, before falling into negative territory, losing $21 and 90 points respectively from Friday’s close.
Meanwhile, the leading Chinese coffee shop chain Luckin Coffee has announced a new deal to purchase Brazilian coffee worth $2.5 billion. The announcement was made on Tuesday 17 September by the president of The Brazilian Trade and Investment Promotion Agency (Apex-Brasil), Jorge Viana.
“We have already negotiated the next Luckin Coffee announcement, they want to disclose it at the time of the G20 summit,” Viana, told an event alongside President Luiz Inacio Lula da Silva.
The G20 leaders’ summit will take place in November, in Rio de Janeiro.
In calendar year 2023, Brazil exported a total of 1.48 million bags of all forms of coffee to China, a 278.6% increase over 2022.
This made China the sixth largest destination market for Brazilian coffees last year. In the statistics for the first eight months of 2024, exports to China amounted to just 641,000 bags. But Cecafé is convinced that shipments will surge again starting this month, logistical conditions permitting.
In the 2022/23 coffee year, Chinese consumption exceeded 3 million bags, an increase of 15% over the previous year, says the Ico.
Costa Rica is expected to produce1.61 million bags of coffee in CY 2024/25, up 5.6 per cent compared to 2023/24 says the Coffee Institute of Costa Rica (Icafé). According to the Institute, 1.32 million bags will be available for export.
