MILAN – Robusta coffee futures prices fells sharply yesterday, but still managed to remain at consistently high levels. After a slightly upbeat start, the week between April and May has so far seen three consecutive sessions in negative territory. The London stock exchange has gradually lost ground, ending in a free fall in yesterday’s session.
The main contract (July) had risen on Monday to $4,164, in a partial rebound after suffering heavy losses on 26 April.
However, a bearish trend emerged on Tuesday, with the benchmark losing $484 (-11.6%) over three sessions. This included a $298 (-7.5%) decline yesterday, to settle at a 20-day low of $3,680.
In New York, the July contract fell 2,140 points (-9.4%) in three days, closing yesterday at 206.10 cents, down 990 points (-4.6%) from Wednesday.
The sharp correction was mainly due to technical factors and the strength of the dollar, as there were no major changes on the fundamental front.
Profit taking in both London and New York was accelerated, as usual, by automatic selling triggered by the downside violation of some key supports.
Prices were also pressured by a partial replenishment of the certified stocks in both markets.
Stocks in New York, almost all (99.7%) held in European warehouses, rose to 667,376 bags, the highest level since early May 2023. Ice Robusta stocks, on the other hand, are at their highest level in five months.
For historical perspective, it is worth noting that in May 2022, the certified stocks held against the New York Arabica market were over 1.1 million bags. The year before, they stood at over 1.9 million.
Finally, it is interesting to compare the prices on the two exchanges with those on the same date a year ago. On 2 May 2023, New York closed at 186.75 cents: 1,935 points below the current price.
London, on the other hand, closed at $2424: $1,256 less than yesterday and $1,880 less than the all-time high hit on 25 April.
The upward race in Vietnam’s domestic prices also came to a halt, with yesterday’s prices averaging between VND132,000 and VND133,200 ($5.2-$5.25), in Dak Lak between VND132,600 and VND132,700, down VND700 from the previous day.
