MILAN – Another day of strong gains for the coffee markets: yesterday, Wednesday 7th August, New York and London gained 4.4% and 2.2% respectively, closing at their highest levels since 12th and 22nd July.
The Ice Arabica contract for September delivery closed at 246.30 cents, up 1,035 points from Tuesday. September Ice Robusta coffee gained $98 to settle at $4,481.
Both coffee markets were driven higher by weather reports from Brazil, where a cold front arriving next weekend could drop temperatures below zero in southern Minas Gerais on Sunday 11th.
According to Amanda Souza of Metereo Brasil, the frost will occur in limited areas, but could be severe.
The news further pushed up the markets, which were already on edge over the reduced prospects for production in Brazil and Vietnam.
In New York, there was a slight increase in certified stocks, which stood at 826,444 bags yesterday, of which 697,727 are Transition Stock.
More than half of the stock (418,116 bags) held against the New York market is coffee of Brazilian origin. A further 121,381 bags is coffee from Honduras.
Meanwhile, preliminary data released by the Brazilian government indicate that the country’s green coffee exports reached a total of 3,371,100 bags in July, up 44% from the same month last year.
Cecafé will release full data on Brazilian coffee exports next week.
