Fear of a supply shortage has prompted short-term speculation to push prices back up in both futures markets…
Robusta chart London 3/2022 session on December 29, 2021
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in March increased by 21 USD, to 2,364 USD/ton and term for delivery in May increased by 12 USD, to 2,304 USD/ton, significant increases. Trading volume very below average. The island price structure widens the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York has an upward trend. March spot futures rose 3.30 cents to 228.90 cents/lb and May delivery also increased 3.30 cents to 228.95 cents/lb, strong gains. Trading volume remained very low below average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 42,300 to 42,700 VND/kg.
The price of exported Robusta coffee 2.5% black broken, stood at $2,054/ton, FOB – HCM, with a deduction of about $240-250/ton according to the May futures price in London.
The Reais fell 0.18%, the exchange rate fell to 1 USD = 5.6990 Reais after the turmoil of the world financial markets and the concern that the Omicron variant would not be the same as it was at the beginning if the 3rd dose was widely vaccinated. cobble.
Meanwhile, concerns about the decline in world coffee production and obstacles in the global logistics sector make the supply and demand situation even more complicated, and prices are still not stable. In addition, the erratic weather and the spread of the Covid-19 epidemic made coffee growers in many producing countries not hurry to sell due to the expectation that prices would still increase.
Vietnam has just estimated that coffee exports in the last month of 2021 will reach only 2.17 million bags, down 6.5% over the same period last year. Therefore, coffee exports for the whole year of 2021 will total 1.52 million tons, down 2.7% compared to 2020. High transport costs and restrictions on transportation have made coffee exports Coffee from Vietnam is slow.
It seems that the report from Vietnam has caused speculation on the London floor to widen the island price gap, while the volume of trade in the last session was very low as most of the traders had left the market for the extended holiday. Year-end and New Year’s Eve 2022.
ANhan Van (giacaphe.com)
