The continuous recovery of the reais has supported Brazilians when delivering coffee to exporters, while the negative impact of the covid-19 epidemic and too expensive sea freight also contributed to pushing up the prices of the two floors. High term…
Robusta London chart September 2021, week 25 (from June 21, 2021 to June 26, 2021)
For the whole week 24, London market had 4 gaining sessions and 1 decreasing session. The price of Robusta coffee for September delivery increased by all $63, or 3.90 percent, to $1,679 per ton, and for November delivery increased by all of $56, or 3.42%, to $1,693 /ton, strong increases. Trading volume high above average.
Meanwhile, the New York market had 3 increasing sessions and 2 decreasing sessions. The price of Arabica coffee for September delivery increased all of 5.85 cents, or 3.85%, to 157.80 cents/lb and December delivery increased by all 5.70 cents, or 3.0%. 68%, to 160.65 cents/lb, strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands market increased by 1,100 – 1,200 VND, to fluctuate in the range of 34,900 – 35,800 VND/kg.
Coffee prices on both exchanges returned to the uptrend after optimism from USDX with a new funding package worth nearly $600 billion to renovate and build infrastructure proposed by the US President, while the reais continued. Continuing the recovery also means that businesses have to pay more to receive coffee from Brazilian farmers.
According to the Barchart.com, Arabica coffee prices got support from Safras & Mercados’ new crop report in Brazil. This report shows that the current harvest is slightly slower than the same period last year, although the dry weather is favorable for drying. While the price of Robusta coffee, supported by Vietnamese supply, continued to decline because of a shortage of empty containers and excessively high sea freight rates.
Indonesia, the world’s third largest producer of Robusta, now has a new crop on the market. However, as usual, it is difficult for export traders to compete with domestic industrialists when they do not have enough production plans and guarantee for domestic consumption.
Meanwhile, Uganda, Africa’s top Robusta producer, has announced a strict closure until the end of June because of the outbreak of the covid-19 disease. This has made the consumer market even more worried besides the shortage of supply from Vietnam.
As of Monday, June 21, the inventory of Robusta coffee certified and tracked by the London floor has decreased by another 1,520 tons, or 0.99 percent less than a week earlier, to registered at 154,210 tons. (equivalent to 2,444,833 bags, 60 kg bags).
English (giacaphe.com)
