The coffee derivatives market returned mixed as the Reias weakened and Brazilians increased selling to hedge the newly harvested crop.
Robusta chart London July 2021 session on 11/06/2021
Ending the last session of the week, Robusta coffee prices on ICE Europe – London continued to recover. Futures for spot delivery in July increased by 7 USD, to 1,592 USD/ton and for September delivery increased by 8 USD, to 1,611 USD/ton, slight increases. Trading volume remain average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. July spot futures fell 1.25 cents to 157.45 cents/lb and September futures fell 1.20 cents to 159.60 cents/lb, significant declines. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 100 dong, to range from 33,800 to 34,400 dong/kg.
The price of exported 2.5% black Robusta coffee stood at $1,619 per ton, FOB – HCM, according to September futures prices in London.
The Reais fell 1.08%, the exchange rate fell to 1 USD = 5.1210 Reais due to concerns about rising inflation and the possibility that the Monetary Policy Committee (Copom) will raise the basic interest rate of the Reais by 0 more. ,75% in the upcoming meeting. While USDX is strong again with speculation that the Fed will reduce economic stimulus measures because US inflation has exceeded the target level quite high.
Coffee prices returned to the opposite direction before the weather information that Brazil had rain, although the rainfall was very low compared to the average for many years, but the problem is that the increased ground moisture will raise concerns about the possibility of winter frosts. winter to low. The decline in Arabica coffee prices was also due to reports that Brazil had sold up to 43% of the new crop that is still being harvested by the forward method, according to a report by Safras & Mercados.
Meanwhile, Robusta coffee prices have support from the leading producer reporting a decline in May exports, although most speculation in London is still standing outside the market to wait for more information from the meeting. monetary policy in the middle of next week.
Indonesia, the world’s third largest Robusta coffee producer, is entering the main harvest season with the expectation of increased output according to USDA forecasts. However, it is not until early August that new crops are offered for sale, but usually give priority to buying for the coffee industry of the country.
English (giacaphe.com)
