Trends on the Rise: Robusta Coffee Prices Reach 16-Year High

Futures contracts for robusta coffee on ICE saw a notable 4% increase this Wednesday, reaching the highest level in at least 16 years. This significant surge reflects renewed investor interest due to tight supply in Vietnam, the world's largest producer of robusta coffee. The rise was particularly pronounced, with the May contract rising to $3,812 per ton, reaching the highest level since the beginning of trading these contracts in 2008.

Operators observe an increase in the number of farmers and traders selling coffee in Vietnam; however, the available volumes remain insufficient to meet the demand from exporters and trade houses, contributing to the scarcity of supplies. Additionally, in Brazil, the world's second-largest producer of robusta coffee, prices reached a historic milestone, surpassing 1,000 reais per 60 kg sack for the first time. However, remaining volumes in the Brazilian market are low as the country approaches the 2024 harvest.

Meanwhile, the arabica coffee contract also saw a 3% increase, reaching $2.036 per pound, the highest level since mid-December. These movements reflect the dynamics of the global coffee market, with ongoing concerns about supply and demand, as well as the influence of production conditions in key producing countries.

Source: Investing.com