MILAN – Coffee futures prices lost ground in the first sessions of the week. In New York, Ice Arabica contract for September delivery was 230 points down at 157.55 cents per lb on Tuesday hitting the lowest level for the main contract since January 23rd.
Following last Friday’s rally, Ice Robusta coffee futures in London lost $51 between Monday and Tuesday to end yesterday at $2,570.
The New York “C” contract is still under pressure on the outlook for dry conditions in Brazil’s coffee belt to speed up the pace of the country’s coffee harvest.
Weather reports from Brazil coffee growing areas continue to indicate conducive weather, albeit with a cold front is forecast to bring with it overnight temperatures somewhere in the upper single digits Celsius, with no indication of unusually low temperatures in the forecasts at this stage.
Losses in London futures were eased on Tuesday by renewed concerns about tighter global Robusta supplies. In Vietnam, coffee production is seen 7% down this to 1.67 million bags, according to a survey led by Bloomberg.
Coffee exports from Vietnam are estimated to have decreased 2.2% in the first half of 2023 from a year earlier to 1.02 million tonnes, the equivalent of 17 million 60-kg (130-pound) bags, official data showed. Coffee export revenue for Vietnam rose 3% to $2.4 billion in the January-June period.
In other news, several countries, including India, Russia, and Brazil, have expressed concerns about the European Union’s (EU) carbon tax and deforestation regulation during a recent World Trade Organisation (WTO) meeting in Geneva.
During the meeting, India specifically highlighted the EU’s deforestation regulation, noting that the agriculture sector in developing countries plays a crucial role in employment and economic well-being.
