The forecast of frosty weather covering southern Brazil this week has boosted two-floor coffee prices to continue their upward trend…
Read more: >> Frost in Brazil threatens to raise coffee prices further.
>> Frost damages coffee trees.
Robusta chart London September 2021 session on July 26, 2021
At the end of the first session of the week, the price of Robusta coffee on the ICE Europe – London floor extended the rising chain to the fifth session. The September spot futures increased by 65 USD, to 1,964 USD/ton and the November delivery term increased by 68 USD, to 1,975 USD/ton, very strong increases. Trading volume quite above average. The island price structure increases the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York returned to the upward momentum. September spot futures rose 18.80 cents to 207.80 cents/lb and December futures rose 18.75 cents to 210.70 cents/lb, extremely strong gains. Trading volume maintained very well above average..
The price of green coffee beans in the Central Highlands provinces increased by 600-700 VND, to range from 38,100 to 38,600 VND/kg.
Export price of Robusta coffee grade 2.5% black broken, stood at 1,875 USD/ton, FOB – HCM, with a deduction of 90-100 USD/ton according to the November futures price in London.
The Reais gained 0.67%, the exchange rate rose to 1 USD = 5.1750 Reais as the USD weakened back in the basket of strong currencies as soaring commodity prices boosted the value of the following emerging currencies. when the European Central Bank (ECB) showed a dovish attitude last week.
The price of coffee on both floors continued the strong increase when the weather forecast this week will have more cold air covering southern Brazil over the main coffee producing regions. The forecast shows that the temperature is unlikely to drop below 0 degrees Celsius but does not rule it out “black frost” because many coffee growing areas are dry, while it is not yet possible to quantify the damage caused by the last two frosts. Frost will not only jeopardize Brazil’s coffee production through 2022, but many years beyond.
Contributing to the price increase was also due to the two coffee futures exchanges raising the margin level to limit speculation “manipulate” in “weather trading period”.
In particular, the world financial markets are waiting for the Fed’s policy meeting this week, even though the Fed previously expressed its steadfast stance when the US inflation exceeded the target level, causing concern in most markets.
English (giacaphe.com)
