The early spring rains in Brazil caused coffee prices to reverse in the short term, but not enough to cause a prolonged negative trend on both futures exchanges.
Robusta London chart November 2021, week 36 (from September 6, 2021 to September 11, 2021)
For the whole week of 36, the London market had 2 gaining sessions and 3 decreasing sessions. The price of Robusta coffee for November delivery fell by all 11 USD, or 0.53%, to 2,048 USD/ton and for January 2022 delivery, all decreased by 21 USD, or 1.02%. $2,038/ton, slight declines. Trading volume on average.
On the contrary, the New York market had 2 gaining sessions and 2 decreasing sessions. The price of Arabica coffee for December delivery fell all of 4.95 cents, or 2.56%, to 190.75 cents/lb and the March delivery term also fell all of 4.95 cents, ie. down 2.53%, to 190.75 cents/lb, very significant reductions. Trading volume quite above average.
The price of green coffee beans in the Central Highlands market decreased by 200-300 dong, down to range from 33,900 to 40,400 dong/kg.
The weather forecast in Brazil has rained mainly in the Conilon Robusta growing area, while there are only a few scattered showers insignificantly in the southern Minas Gerais Arabica coffee growing region, but also made investors in the New York floor rush. short-term profit taking gold. In addition, Arabica coffee prices returned to a downward trend after a report by Safras & Mercado showed that Brazil sold an estimated 60% of the newly harvested crop compared to the 5-year average of about 48%. This is an encouraging sales figure, strongly supported by the current high prices of the New York Stock Exchange.
Meanwhile, although it also adjusted down according to the New York Stock Exchange, the price of Robusta coffee in London was still cautious due to the concern that the supply from Southeast Asia would be delayed due to the epidemic and sea freight rates. skyrocketing in the past few months. In addition to the report of certified inventory decline, speculation on the London floor still maintains the inverse price structure to attract traders to bring goods to the auction floor.
The highlight of the week is the International Coffee Organization (ICO) August Trade Report. Thereby, the ICO adjusted the global coffee surplus for the 2020/2021 crop year to 2.63 million bags, up from 2.02 million bags according to the July Trade Report. However, the adjustment increased 0.61 million bags (about 36,600 tons) a figure not large enough to shock the world coffee market.
As of Monday, September 6, inventories of Robusta coffee certified by the London floor have decreased by 1,170 tons, or 0.85% from a week earlier, to register at 136,910 tons (equivalent to 2,281. 833 bags, 60kg bags). Recorded the 7th consecutive week of decrease in inventory level.
English (giacaphe.com)
