MILAN – The rally in the coffee futures markets continues, despite the reassuring data on Brazil’s 2024/25 crop in the recently released USDA Gain Report. July ICE robusta coffee gained yesterday, Tuesday 4th June a further $60 to close at a new high of $432, once again influenced by difficulties in the physical market and slow pace of exports from top Vietnam, where farm gate prices in the Central Highlands region hover around VND123,000.
Strong gains were also seen in New York, where July Arabica coffee futures rose 3.2% (+735 points) to settle at 233.90 cents. It is worth noting the appearance of a new item in the ICE Arabica certified stocks statistics, that of the so-called “Transition Stock” in European ports.
These are the stocks defined as non-EUDR-compliant that are held in European port warehouses under a bill of lading on or after June 29, 2023 and prior to December 31, 2024.
These stocks currently amount to 656,945 bags (83% of all certified stocks) and are mainly located in the warehouses of the Belgian port of Antwerp.
On a positive note, coffee exports from Honduras and Costa Rica are on the rise.
According to preliminary data from the National Coffee Institute of Honduras (IHCAFE), the country’s exports for the month of May recorded a 13.65% increase over the same month last year to total 938,811 bags.
Cumulative coffee exports for first eight months of the current October 2023 to September 2024 coffee year are 1.62% higher, at a total of 3,637,323 bags.
However, the institute predicts that overal exports at the end of the current October 2023 to September 2024 crop year will be 6.6% lower on-year down to 4.98 million bags.
According to statistics from the National Coffee Institute of Costa Rica (ICAFE), the country’s exports were up 13.65% in May totalling 135,027 bags.
This brings the overall figure for the first eight months of the current October 2023 to September 2024 to 589,708 bags, up 5.90% from the same period of 2022/23.
ICAFE forecast total exports for 2023/24 down by 13% to 1.3 million bags.
