Robusta coffee falls in the New Way in Demand

Robusta coffee fell to its lowest level in more than five years, dragged by the withdrawal recorded in commodity prices and increased sales of Vietnam, the world’s largest producer of this variety used for instant drinks.

Global markets once again shook as oil continued its decline with the lowest close in more than 12 years and the Bloomberg Commodity Index, a measure of 22 commodity yields, fell to its lowest level since 1991. Farmers in Vietnam they have stepped up sales of their 2015-16 vintage that began in October in order to obtain cash before the holidays for the Lunar New Year celebrations known as Tet, which begins on February 8.

The “chart showing coffee and oil reveals a remarkable correlation,” Toby Donovan, BGC Partners broker in London, said by email. ” The impact of oil cannot be ignored .”

Robusta coffee for March delivery fell 3.1 percent to US $ 1,369 a ton on the ICE Futures Europe stock exchange, the lowest level since June 9, 2010, for one of the most active contracts. Futures were down 2.8 percent at US $ 1,372 a tonne at 1:21 pm in London.

Vietnamese farmers “continued to liquidate their stocks of the new crop” last week, according to a Friday report from Volcafe, the coffee unit of ED & F Man Holdings Ltd., the commodity trader. The country’s export market “came to life” and the roasters who had been waiting for pressure from sales by the Tet decided to buy, the report added. “The Vietnamese have been in the market this week,” Donovan said.

In New York, Arabica coffee for March fell 2 percent to US $ 1.1335 a pound on the ICE Futures US-Brazil Stock Exchange, the world’s largest producer of the preferred variety by Starbucks Corp., exported a record of 33.3 Millions of bags of green coffee last year, according to what was said on Tuesday by the council of the country’s exporters, known as Cecafé.

As for other markets, cocoa with delivery in March fell by as much as 4.9 percent in London, to 2,040 pounds (US $ 2,891) per ton, while the contract in New York fell by 3.1 percent, to US $ 2,844 per ton.

World chocolate sales were down 3.7 percent from September to November compared to the previous year, making it the biggest drop in the Americas, said Barry Callebaut AG, the world’s largest cocoa processor, in a statement. Wednesday, citing Nielsen figures. The market shrank 5.4 percent in the Americas, 3.2 percent in Europe, the Middle East and Africa and 1 percent in the Asia-Pacific region, he added.

Filed in: US

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