MILAN – Coffee futures prices rebounded from last week’s lows on Wednesday. In New York, the main contract for December delivery closed 385 points up at 153.90 cents per lb, the highest daily gain in weeks. In London, the most active contract for November delivery gained $28 to end the day at $2402.
Coffee prices were supported by a stronger Brazilian real, which rose Wednesday to a 1-1/2 week high against the dollar, discouraging export selling from Brazil’s coffee producers.
Another bullish factor was the low level of certified stocks in both London and New York. ICE-monitored Robusta coffee inventories on Wednesday fell to a record low of 3,599 lots, or 599,833 bags, while ICE-monitored Arabica coffee inventories on Tuesday dropped to a 9-month low of 513,503 bags.
Dealers quoted by Reuters said the recent decline in prices had slowed producer selling, particularly in top producer Brazil.
Arabica coffee prices fell to a 7-1/2 month low last Friday, with favourable weather in Brazil accelerating the country’s coffee harvest. Cooxupe, the world’s largest coffee cooperative, reported that coffee harvest was 87.3% completed as of August 18, ahead of the 85.5% completed at the same time last year.
On the Robusta side, Vietnam’s General Department of Customs reported on August 9 that country’s coffee exports in the first seven months of this calendar year fell -3.4% y/y to 1.1 MMT. Vietnam’s coffee harvest this year is seen to drop more than -7% to 1.67 MMT, the smallest crop in four years, according to a Bloomberg survey of exporters and traders.
On the other hand, Cecafé reported on August 10 that Brazil’s July green coffee exports rose +22% on year to 2.7 mln bags, with Robusta July exports more than tripling to 505,153 bags.
According to the Uganda Coffee Development Authority, or UCDA, the country’s coffee exports for the month of July were 70,019 bags or 12.16% higher than the same month last year, for a total of 645,832 bags.
Uganda Robusta exports recorded a 11.40% increase when compared to the same month last year, to total 586,871 bags. Arabica exports saw a 20.33% increase to 58,961 bags.
However, cumulative exports for the first ten months of the current coffee year were slightly lower (-0.61%) on year at a total of 4,817,768 bags.
