After successively liquidating short-term speculative positions, hedge funds returned to buy in fear of a supply shortage as the forecast for Brazil’s crop outlook worsened…
Robusta chart London September 2021 session on August 3, 2021
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. The September spot term increased by $19, to $1,772/ton and the November delivery term increased by $21 to $1,787/ton, very significant increases. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also reversed to increase. September spot futures rose 2.05 cents to 174.85 cents/lb and December futures rose 2.10 cents to 177.85 cents/lb, significant gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 300-400 dong, up to range from 35,900 to 36,700 dong/kg.
Export price of Robusta coffee grade 2.5% black broken, stood at 1,747 USD/ton, FOB – HCM, with a deduction of 50-60 USD/ton according to the November futures price in London.
The Reais fell 0.52%, the exchange rate fell to 1 USD = 5,1920 Reais on speculation that Copom Brasil would raise the basic interest rate of the Reais today, in the context that the foreign exchange market remained stable with a recession. predicting that the Fed will cut economic stimulus as soon as this year has supported agricultural exports.
Brazil reported July coffee exports reached 2.36 million bags of coffee beans, down 14.83% year-on-year, marking the first month of declines in exports of the new coffee crop (from July/July). 2021 – June 2022), due to the loss of new crop production due to drought right from the cotton and Arabica production stage in “the seventh” cyclical “two years one”.
Meanwhile, the export of Robusta coffee from the Southeast Asian market continued to slow down due to the outbreak of the new strain of Covid-19 disease, especially the information about the congestion of goods that made Vietnam’s main coffee export port. There is no place for delivery.
English (giacaphe.com)
