Coffee market last week 06/01/2018

Arabica coffee futures on the ICE Futures US in New York ended the cumulative gain of nearly 2 percent after several days of gains as the Brazilian real currency appreciated against technical support.

Friday's closing price, Arabica coffee price in March fell 1.10 cents / lb to 128.45 cents / lb. Meanwhile, Robusta coffee price in March dropped $ 4 / ton to $ 1,724 / ton.

Despite the declining session last week, Arabica coffee futures prices have increased sharply in recent sessions. "This shows a big turning point and we can see the uptrend extends and extends into the first half of 2018," said Hackett Financial Advisors Shawn Hackett.

Information on the improvement of coffee production in some major producing countries still affects the market. Weather forecasts continue to rain in the main coffee producing regions in Brazil in the short term. However, Mr Hackett no longer believes that the output of Brazilian coffee in the 2018/19 crop will reach a record high of 60 million bags.

Meanwhile, the Center for Advanced Study in Applied Economics (Cepea) in Brazil emphasized the possibility that domestic and international coffee prices would decline. "Favorable climate for the 2018/19 coffee season in Brazil and a good seasonal cycle can lead to similar or even higher levels of coffee production in 2016/17, "According to researchers at Cepea.

At the Brazilian coffee belt, people are starting to gather information about the coffee prospects next season. Despite expectations for high coffee yields due to falling season, coffee growers in major producing regions have seen a sharp decline in the number of beans that have been harvesting in the past few days.

The Procafé Foundation, one of the main research institutes for Brazilian coffee production, has warned by the end of 2017 that the decline in coffee production due to falling leaves results in more decayed coffee beans. in the beginning of seedling stage (about 80 - 100 days after flowering period, in December and January)