Speculators on two futures exchanges show the trend “Sell London buy New York” in recent sessions…
Robusta chart London September 2021 session on August 5, 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 $6, to $1,764 per tonne and the November delivery term fell $5, to $1,782 per ton, a slight decrease. Trading volume maintained on average.
In contrast, the price of Arabica coffee on the ICE US floor – New York increased for the third consecutive session. September spot futures added 1.25 cents to 176.90 cents/lb and December futures added 1.20 cents to 179.90 cents/lb, slight gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 dong, to range from 35,800 to 36,700 dong/kg.
Price of exported Robusta coffee grade 2.5% black broken, stood at 1,742 USD/ton, FOB – HCM, with a deduction of 40 – 50 USD/ton according to the November futures price in London.
The Reais fell 0.55%, the exchange rate fell to 1 USD = 5.2170 Reais, due to political and financial instability concerns despite showing positive from the beginning of the session, after Copom announced an increase the reais base rate increased by 1% to 5.25% pa and the market speculates that it will increase further. Economic experts estimate that compared to emerging currencies, the Brazilian reais has depreciated a lot.
The market has also appeared many reports assessing the damage caused by recent frosts in Brazil, the lowest is about 2 million bags and the highest is about 8 million bags, but speculators are still not satisfied with the results. this number. Because according to them, the 2022 crop falls in the year of Brazilian Arabica coffee trees that produce cyclically high yields “two years one” so the damage is even greater. Moreover, the National Monetary Council (CMN) in association with the Coffee Economic Defense Fund (commonly referred to as Funcafé) has just announced a support of 1 billion Reais, for coffee plantations to recover. after this more or less frost damage, is taken as an example.
On the contrary, the London Robusta market continued to witness the liquidation and profit-taking of short-term speculation even though there was still concern that the supply would be slowed down because of too expensive shipping charges and especially the covid-19 epidemic. A new strain broke out. It is easy to see the trend of speculators with the phenomenon “Sell London buy New York” in recent sessions.
English (giacaphe.com)
