MILAN – Following the Memorial Day holiday, Ice Arabica resumed trading on Tuesday on a negative tone. The main contract for July delivery lost 450 points close near two-month lows at 177.10 cents per lb. Ice Arabica certified stocks fell slighty on Tuesday to a new 6-month low of 592,634 bags.
According to the latest Commitment of Traders report from the New York market, the shorter term in nature Managed Money fund increased their net long position by 6.08% over the week of trade leading up to Tuesday 23rd. May 2023; to register a new net long position at 28,988 lots.
The longer term in nature Index Fund sector of this market marginally decreased their net long position by 0.28% within the market, to register a new net long position of 60,111 lots.
July ICE Robusta coffee fell slightly on Tuesday to end the day at $2,562 below last week’s 15-year highs.
Harvest pressures in Brazil are undercutting Arabica coffee prices as dry conditions allow the pace of the coffee harvest to accelerate, reports Barchart.
The climate should collaborate for the advancement of coffee harvesting and drying. UK-based trader DR Wakefield noted Arabica price premiums in top producer Brazil’s physical markets are easing, meaning ICE stockpiles should grow as the current harvest gets underway.
According to the well-known and authoritative consultancy firm Safras & Mercado, Brazils had reaped reaped 12% of the 23/24 crop as of May 23. This corresponds to an advance of 3% compared to last week. Work is slightly below the same period last year, when growers had reaped 13% of the crop, below the five-year average, which revolves around 15% of production.
Coffee exports from Vietnam are estimated to have decreased 2.2% in the first five months of 2023 from a year earlier to 882,000 tonnes, equivalent to 14.7 million 60-kg (130-pound) bags, the General Statistics Office said on Monday.
Local dealers say Vietnam has almost run out of stocks to export, meaning figures should decline further going forward. However, USDA’s new Gain Report sees Vietnam’s 2023/24 coffee production up by 5% to 31.3 million bags.
