USDX increased sharply, causing cautious speculation, short-term profit taking, causing the price of coffee on both floors to decrease again…
Robusta chart London July 2021 session on May 21, 2021
Ending the last trading session of the 20th week, the price of Robusta coffee on ICE Europe – London dropped for the third consecutive session. Futures for spot delivery in July decreased by 12 USD to 1,478 USD/ton and for September delivery also decreased by 12 USD to 1,503 USD/ton, significant reductions. Trading volume quite below average.
In contrast, the price of Arabica coffee on the ICE US floor – New York tended to decrease. The July spot futures fell 0.85 cents to 150.1 cents/lb and the September futures also fell 0.85 cents to 152.1 cents/lb, significant declines. Trading volume below mbreast medium.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 dong, to range from 32,600 to 33,000 dong/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,535 USD/ton, FOB – HCM, with a plus difference at 20 USD/ton according to September futures prices in London.
The reais fell sharply by 1.47%, the exchange rate fell to 1 USD = 5,3540 Reais because the outside market was optimistic again after the statement affirms that the Fed’s monetary policy is still in line with economic development. economy and the rise of inflation, caused USDX to bounce back.
The price of coffee futures dropped again when the reais fell sharply, which supported Brazil to sell new crop hedges and speculate on short-term profit taking. However, the trading volume is quite low on both exchanges, showing that speculators are still cautious with current prices.
Brazil’s production this year declined, due to the drought at the beginning of the crop and Arabica coffee trees in the year produced cyclically low output. “two years one”, is confirmed. However, the market is also very interested in the weather at the end of the season. Heavy rain not only helps the coffee beans ripen, yielding higher yields and quality, but also prevents the formation of winter frosts and contributes to the recovery of coffee plants after harvest.
English (giacaphe.com)
