MILAN – Coffee futures prices fell sharply on Thursday after reaching new highs on both markets. In London, the most traded contract for July lost ground on profit-taking, after climbing to a new all-time high of $4,292, and ended the day at $4,062, down $133 from the previous session. July Arabica coffee in New York lost 925 points and settled at 231.10 cents per lb, its highest since February 2022 at 245.40 cents.
A stronger dollar sparked long liquidation in coffee futures following this week’s sharp rally. The Brazil Real has depreciated by 4.93% over the past week and settled around the low for the year against the US Dollar, yesterday.
“Can we say the ride is over? Nope. Profit taking? Most likely,” said a coffee trader quoted by Reuters.
Tight Robusta coffee supplies from Vietnam, are a major bullish factor. Farmers are holding onto stock despite the record highs, as they expect even higher prices, while the outlook for next season’s crop continues to worsen, thanks to dry conditions.
Domestic coffee prices on Thursday fluctuated between 115,600 – 116,200 VND/kg, maintaining an increase of 1,500 – 1,600 VND/kg.
Weather conditions within Vietnam continue to be monitored closely, as reports come to the fore that April is drier than average conditions thus far, while the new October 2024 to September 2025 crop develops.
The central highlands of Vietnam are experiencing comparatively drier weather at this time of year, in that the rain season is traditionally due to begin in April, weather forecasters are predicting rainfall to start to pick up towards the end of the month, says I. & M. Smith in its daily report.
Meanwhile, Brazil’s Minas Gerais region received 15.8 mm of rainfall in the past week, or 74% of the historical average, according to Somar Meteorologia. Minas Gerais accounts for about 30% of Brazil’s arabica crop.
