MILAN — Coffee futures markets are once again bullish, ahead of the European Parliament’s crucial vote on the postponement of the implementation of the EUDR, which is scheduled on Thursday 14 November. Both terminals recovered on Monday and Tuesday, with two consecutive sessions in positive territory, helped by the continuing difficult weather situation in Brazil and Vietnam.
Yesterday, Tuesday 12th November, the Ice Arabica March contract gained 735 points (+3.1%) to close at 263.10 cents, the highest level for the main contract since early October.
In London, the contract for January delivery rose a further $61 (+1.36%) to $4,537, its highest level since 18 October.
Coffee futures prices were also boosted by investors pumping money into commodities following the U.S. election.
However, according to Pine Agronegócios, a market analysis and forecasting company, the outlook between now and the end of the year looks good and the expected improvement in weather conditions will, if nothing else, help to prevent further damage to the trees, in addition to that which has already occurred (and which is no longer repairable).
We reiterate that it will still be at least a couple of months before the first reliable estimates on the new crop can be made.
In Vietnam, physical trade remains difficult and limited due to tight supply in the market.
According to the General Department of Customs, exports – during the month of October – declined year-on-year by 11.6% to 45,412 tonnes, or only 756,867 bags (compared to 871,171 bags of Robusta exported last month from Brazil, ed.)
In the first 10 months of the calendar year, Vietnamese exports were similarly down by 11.1%, to 1.15 million tonnes or 19,166,667 million bags.
As for the weather, tropical depression Yinxing passed over Gia Lai Province yesterday afternoon bringing moisture and rain. The system has since weakened considerably.
Positive figures from the new report of the Colombian Federation of Coffee Growers. In October, Colombia produced 1.34 million bags, an increase of 16% compared to the same month last year. In the last 12 months (November-October), production rose to 12.94 million bags, up 19%.
The export trend was also positive, with a 15% increase in October to 1.047 million bags.
Exports are expected to reach 12 million bags by the end of the calendar year. Gustavo Gómez, president of the National Coffee Exporters Association of Colombia (Asoexport), meanwhile, announced in an interview that within 2-3 years, Colombia will begin producing Robusta coffee for the first time in its history.
The trial is currently underway in regions where coffee had never been grown and far away from the main Arabica areas.
Specifically in the areas of MonterÃa (Caribe), Casanare y Meta (Llanos Orientales) and Tumaco (PacÃfico). The feedback so far has been positive, with good productivity levels.
