The coffee futures markets were mixed with very low volume due to the long holiday at the end of the calendar year…
Robusta chart London 3/2022 session on December 30, 2021
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to increase. Futures for delivery in March increased by 9 USD, to 2,373 USD/ton and term for delivery in May increased by 8 USD, to 2,312 USD/ton, slight increases. Trading volume remained very low below average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York adjusted down. March spot futures fell 0.05 cents to 228.85 cents/lb and May delivery fell 0.15 cents to 228.80 cents/lb, slight losses. Trading volume remained very low below average.
The price of green coffee beans in the Central Highlands provinces increased from 0 to 100 VND, to ranged from 42,300 to 42,800 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 2,062 USD/ton, FOB – HCM, with a deduction of about 240 – 250 USD/ton according to the May futures price in London.
The reais rose 0.16% to 1 USD = 5.6480 Reais after concerns that the Omicron variant had caused a sharp increase in hospitalizations and deaths around the world.
Robusta coffee prices continued their upward momentum with trade volumes remaining very low, while London inventories reported continued declines with increased industrial demand ahead of Christmas and New Year’s Eve.
On the contrary, the price of Arabica coffee adjusted down technically, while the New York market was still afraid of scarce supply and unresolved logistics problems in the short term.
Follow Ecom Trading, it is forecasted that in the coffee crop year 2021/2022, there may be a global shortfall of 12.8 million bags as the total production is only at 158 million bags, down 9.4% compared to the previous coffee crop.
Consultant Gil Barabach, of Safras & Mercado in Brazil, asserts that the determining factor for the 2022 market is the size of Brazil’s upcoming crop, with a general estimate of a reduction of around 10-12 million bags, compared with Record crop in 2020 harvested 50 million bags of Arabica.
ANhan Van (giacaphe.com)
