MILAN — It was another record week for the coffee markets, with London hitting a new contract high and New York reaching levels not seen for almost two and a half years. In the space of a week – from Friday 5 July to Friday 12 July – Ice Robusta rose 10.3% and Ice Arabica 8.6%.
The London September contract fluctuated over the five trading days of last week between an intra-day low of $4,188 on Monday 8 July and an intra-day high of $4,668.1 on Thursday 11 July.
The New York September contract traded between an intraday low of 229.80 cents on Monday and an intraday high of 255.30 cents on Thursday.
Both contracts closed at their highs on Tuesday 9 July, with London at $4,634 and New York at 249.95 cents.
It is worth noting that the price of a pound of Robusta at the close of July 9th was 210.20 cents, which is higher than the price per pound of Arabica less than two months ago (206.70 cents on May 20th).
Since the beginning of the month, the daily Ico composite indicator price rose by 10.1% from 224.77 cents on 1 July to 247.48 cents on 12 July, reaching a high of 251.68 cents on 9 July.
On the same day, the Robusta indicator peaked at 229.65 cents, which was higher than the Brazilian Naturals indicator on 1st July, which stood at 227.53 cents.
Meanwhile, the week ended on a moderate upswing, with both markets again close to the highs of 9 July. London closed at $4,617, gaining $41 over Thursday. New York added 390 points to settle at $248.75.
The market continues to closely monitor the situation in Brazil and Vietnam. The coffee harvest in Brazil began to advance quickly again, taking advantage of the dry climate and the maturation stage of crops.
According to data released last week by Cecafé, Brazil’s June export was an unprecedented 3,573,013 bags. But this result is not being interpreted in a positive light by everyone.
According to Brazilian analyst Lúcio Dias, the Brazilian exploit also reflects a tight supply on the market. In our view, this is particularly true for Robusta shipments, which reached unprecedented levels, making Brazil the world’s second largest exporter of this variety in the past 12 months, mainly due to lower exports from Vietnam and Indonesia.
Vietnam’s coffee exports were 70,202 tonnes in June, 11.5% lower than the same month a year ago. This is the lowest level in 13 years for this month of the year.
