The forecast for a weekend frost in Brazil with a very low likelihood of damage has prompted strong liquidation speculation due to previous overbought.
Robusta chart London September 2021 session on 30/07/2021
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London continued to decline. The September spot futures dropped another 99 USD to 1,786 USD/ton and the November delivery term also fell 99 USD to 1,801 USD/ton, extremely strong reductions. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York extended the losing streak to the fourth session. September spot futures fell another 16.95 cents to 179.55 cents/lb and December futures fell another 16.85 cents to 182.45 cents/lb, huge reductions. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 900 – 1,000 VND, to fluctuate in the range of 35,800 – 36,500 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,721 USD/ton, FOB – HCM, with a deduction of 70 – 80 USD/ton according to the November futures price in London.
The reais plummeted by 2.55%, the exchange rate fell to 1 USD = 5.2090 Reais due to program concerns “family allowance” will break the government’s spending ceiling, while news from abroad that there has been a sign of “freezing” that discourages investors from taking risks has dragged emerging currencies down sharply.
Coffee futures prices fell sharply when World Weather said that a patchy frost appeared over the weekend but only caused limited damage to Arabica coffee in some highlands of Minas Gerais, São Paulo, during the weekend. when Robusta coffee is only grown in the lowlands of Espírito Santo and the harvest is complete.
The thawing frost combined with the sharp decline of the Reais also made Brazilians promote protective selling, so the price of coffee dropped again is not unexpected. Besides, there is also the liquidation of speculative positions when the margin level of the two exchanges is said to be high “surprise” not only with small speculators.
According to a forecast by the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA), this year Indonesia can harvest about 11.35 million bags of coffee, down nearly 2.2% from the previous year.
Currently, the lack of conts and no space on ships is a common situation of coffee exporters not only in Southeast Asia, while a new strain of covid-19 is breaking out in this region. . However, the consumer markets are not too worried because it is the summer vacation, so the activity of the roasting industry also slows down.
English (giacaphe.com)
