The return of drought increases the risk of winter frost in Brazil, while Colombian farmers’ demonstrations that prevent the shipment of goods to export ports also contribute to promoting markets to have a rare rally session …
Robusta London chart Saturday / 2021 session on 05/05/2021
At the end of the session, Robusta coffee prices on ICE Europe – London rose sharply. July spot futures increased by 64 USD, to 1,538 USD / ton and futures for September delivery also increased by 64 USD, to 1,559 USD / ton, the strong increases. Trading volume maintain very high above average. Robusta London prices up stood at nearly 8-month highs.
Similarly, Arabica coffee prices on the ICE US – New York floor are in the same trend. July futures rose 9.5 cents, to 149.85 cents / lb and September futures rose 9.45 cents, to 151.75 cents / lb, the strong increases. Trading volume very high above mbrisket medium. New York Arabica prices have stood at high levels since 2017.
The price of coffee beans in the Central Highlands provinces increased by 700 to 800 VND, up fluctuating in the frame of 34,200 – 34,800 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,589 USD / ton, FOB – HCM, with a plus difference of 20-30 USD / ton according to the term in September in London.
Reais copper increased 1.21%, the exchange rate increased at 1 USD = 5.3640 Reais because the market expected an increase in the basic interest rate by 0.75% to 3.5% / year to be approved by the Commission. Monetary Policy (Copom) of Brazil announced at the end of the day attracted a sharp increase in foreign investment inflows, causing USD to depreciate against the Reais, even though US stocks closed at high levels due to concerns about the possibility of tightening. currency tightening after the US Treasury Secretary’s comment in the previous session.
Two-floor coffee prices soared when drought concerns in Brazil returned, which would increase the risk of winter frosts. Although speculators are cautious and need to listen to more monitoring, information about Colombian farmers protested last week, preventing the shipment of goods to the port due to opposing the tax reform project, although Withdrawal by the Government, also contributing to pushing Arabica coffee prices in New York to high levels since 2017.
According to observers, it seems that the price spike in New York is due to the large Hedge Funds triggering automatic buy orders, while the small speculators are still cautious, so trading volume during the session does not increase. proportional.
Meanwhile, workers at the port of Santos plan to meet today to show their attitudes towards the sluggish Covid-19 vaccination, with a one-day strike scheduled for next week. The market is concerned that this event will spread to other Brazilian export ports.
English (giacaphe.com)
