The coffee derivatives markets corrected down after the previous hot session with the caution of speculators, while the support for the uptrend remained intact…
Robusta chart London July 2021 session on May 19, 2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor adjusted down. Futures for spot delivery in July decreased by 13 USD to 1,502 USD/ton and for September delivery decreased by 11 USD to 1,528 USD/ton, significant reductions. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also adjusted down. July spot futures fell 1.85 cents to 150.95 cents/lb and September futures also fell 1.85 cents to 152.9 cents/lb, very significant reductions. Trading volume per square meterbreast medium.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 VND, down to the range of 33,300 – 33,700 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,548 USD/ton, FOB – HCM, with a plus difference at 20 USD/ton according to September futures prices in London.
The Reais fell 1.18%, the exchange rate fell to 1 USD = 5,3150 Reais due to a slight decrease in future interest rates following the release of the Fed meeting minutes, amid rising inflation concerns and major economies. Overheating will lead to a gradual reduction in stimuli. This caused US stocks to continue to weaken and USDX to correct up again.
The decline in coffee prices, with relatively low trading volume after a very strong previous session, is a common occurrence so it is not surprising to the markets.
Analysts said that the coffee derivatives market still has support, while speculators are cautious and want to wait and listen for more news.
In the short term, the bullish trend still prevails.
The U.S. Department of Agriculture’s (USDA) Department of Foreign Agriculture (USDA) forecasts Honduras coffee production in the current season 2020/2021 to increase 11.42% from the previous season, to a total of 6.24 million bags. However, it still can’t match the record production years with more than 10 million bags of Arabica, accounting for more than 70% of ICE – New York’s certified inventory. In particular, the consequences are still heavy from two consecutive storms Eta and Iota last year.
Vietnam Customs reported that exports of the first half of May reached 58,866 tons, equivalent to 981,100 bags, mainly of Robusta coffee, bringing exports of the first 4.5 months of 2021 to a total of 643,845 tons, down 13.72% compared to the same period last year.
English (giacaphe.com)
