The state of Paraná suffered serious damage mainly in the low-lying areas where sugarcane and maize are grown. The coffee tree was damaged by no less than 40%, fortunately the harvest was almost over, according to the State Department of Rural Economic Affairs.
Robusta chart London September 2021 session on July 1, 2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor adjusted down. The September spot futures fell by $4 to $1,701 per tonne and the November delivery futures dropped $7 to $1,705 per ton, slightly lower levels. Trading volume remain above average.
Meanwhile, the price of Arabica coffee on the ICE US floor – New York dropped for the third consecutive session. September spot futures fell another 3.35 cents to 156.4 cents/lb and December futures also fell 3.35 cents to 159.30 cents/lb, sharp declines. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100 dong, to range from 35,400 to 36,200 dong/kg.
The price of exported 2.5% black Robusta coffee stood at $1,701 per ton, FOB – HCM, according to September futures prices in London.
The reais rose strongly by 1.46%, the exchange rate rose to 1 USD = 4,0450 reais due to the caution of foreign investors before the pandemic and information about corruption, combined with concerns from outside when Inflation in North America is high, which may prompt the Fed to consider raising USD interest rates earlier than expected.
Arabica coffee prices continue to weaken as the harvest of the new crop in Brazil enters the final stage, combined with information that Colombia has opened the transport of coffee to export ports.
On the contrary, after the shock increase since last week due to the fear of supply shortage from leading producers has temporarily subsided, the price of Robusta coffee has skyrocketed again on the news that there is a possibility of frost in the world. The entire state of Paraná and the Midwest account for more than 26% of Brazil’s Conilon Robusta production.
The problem is that the new Conilon coffee harvest in Brazil is almost complete, so the damage on Robusta coffee trees in Paraná is mainly for next year, while in the Midwest Brazil is significant. While the main crops in the state of Paraná are corn and sugarcane, there is only about 36,000 hectares of coffee with an average production of 900,000 bags per year.
According to observers, it is still too early to assess the damage in the late June cold in Brazil, but speculators are still sensitive, especially London speculation has pushed price spiked at the beginning of the session Yesterday and during the session, there were still spikes when more and more information about cold weather was updated, although many sources in the market showed little interest. (See London price chart yesterday session)
Giacaphe.com There will be a detailed article for readers to learn from the cold in Brazil on the full moon day of July and August.
English (giacaphe.com)
