MILAN – Arabica coffee futures prices in New York opened the new year on a low note. The main contract for March delivery lost 800 points in the first week of trading of 2023 to close at 3-1/2-week low of 158.30 cents on Friday,. This is the sixth consecutive session in the red for the Ice Arabica market. Favourable weather conditions in Brazil and an increase in Ice Arabica certified stocks weighed on the negative trend.
Robusta futures for March delivery in London also closed $7 down at US$1825. March Robusta futures on ICE have gained $74 in the first two trading sessions of the new year, settling at $1,873 per tonne as of Wednesday’s close, but lost ground afterwards to end the week on the low side.
Abundant global coffee supplies are bearish for prices. ICE Arabica coffee inventories have risen steadily since falling to a 23-year low of 382,695 bags on Nov 3 and posted a 6-month high Friday of 830,272 bags.
The latest Commitment of Traders report from the New York Arabica market has seen the Non-Commercial Speculative sector cut their net short position by 7.39% within the market over the week of trade leading to Tuesday 3rd, to register a new net short sold position of 14,472 lots.
The latest Commitment of Traders report from the London Robusta coffee market has seen the Speculative Managed Money Sector increase their net short position by 36.97% within the market as of Tuesday 3rd to a new net short sold position of 22,582 Lots
In other news, General Statistics Office of Vietnam reported last Wednesday that Vietnam’s Jan-Dec coffee exports were up +10.1% y/y at 1.72 MMT.
Vietnamese coffee prices rose on weather concerns, while Indonesian market remained subdued on weaker supplies, traders said on Thursday.
“The news about unusual heavy rains lashing down Vietnam’s coffee belt, Central Highlands, in the upcoming days has pushed the prices up,” said a trader based in Dak Lak province quoted by Reuters. “Farmers in some areas are still picking cherries but most of them are drying beans. However both works need the sun.”
