London coffee futures price, although still maintaining an inverse structure in the near term, reversed to decline when trading alone…
Robusta chart London September 2021 session on 05/07/2021
At the end of the trading session alone at the beginning of the week, the price of Robusta coffee on the ICE Europe – London floor reversed to decrease. The September spot term decreased by 20 USD to 1,687 USD/ton and the November delivery term decreased by 16 USD to 1,683 USD/ton, significant reductions. Trading volume very below average.
Meanwhile, the price of Arabica coffee remained unchanged, due to New York market is closed for National Day holiday, closed all day, no trading.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 dong, down to range from 35,200 to 35,900 dong/kg.
The price of exported 2.5% black Robusta coffee stood at $1,687/ton, FOB – HCM, according to September futures prices in London.
The Reais fell sharply by 0.65%, the exchange rate fell to 1 USD = 5.0870 Reais due to the lack of influence of the external market while the Supreme Court authorized the Parliamentary Inquiry Committee into the matter. covid (CPI) looks into allegations of corruption in “inflating the price” of vaccines.
The decline in Robusta coffee prices seems to be within the market’s speculation as it has risen quite strongly in the previous two weeks when there was a frost forecast in Brazil. To date, preliminary information has confirmed that temperatures in some coffee growing areas in the Midwest have dropped below 0 degrees Celsius. However, the damage of the frost did not occur immediately, but until the end of the week. This, even through August, is relatively complete.
Despite plummeting from the beginning of the session, the price of Robusta coffee futures in London has slowed down when it was reported that for the first time Vietnam announced that a new person infected with covid-19 in the day surpassed the number of thousands. Certainly, local authorities will vigorously implement social distancing measures, which will also negatively contribute to coffee export activities in the short term.
Gil Barabach, an analyst at Safras & Mercado, thinks that the market is in the process of correcting after overcoming the cold wave. However, caution is still needed when the cold winter in Brazil remains in July and August on the upcoming full moon days.
The Brazilian government reported that the export of green coffee in June reached 2,903,983 bags, an increase of 544,700 bags, or 23.09% increase compared to the same period last year. This will be news that will have a negative impact in the short term when the New York market returns to normal operations after the US National Day holiday.
English (giacaphe.com)
