The pressure of selling new crop hedges combined with the liquidation and adjustment of speculative positions made the price of coffee on the two futures exchanges still stagnate…
Robusta chart London 3/2022 session on 06/01/2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the falling chain to the fourth session. The March spot term decreased by 14 USD to 2,307 USD/ton and the May delivery term decreased by 15 USD to 2,255 USD/ton, significant reductions. Trading volume very below average. The island price structure maintains the gap.
In contrast, the price of Arabica coffee on the ICE US floor – New York maintained a mixed trend. Futures for delivery in March fell 0.05 cents to 231.70 cents/lb, while futures for May delivery rose 0.05 cents to 231.85 cents/lb and futures for July delivery were up 0.2 cents. to 231.55 cents/lb, slight increases/decreases. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 VND, to range from 41,100 to 41,600 VND/kg.
The price of exported Robusta coffee, 2.5% black broken, stood at $2,005/ton, FOB – HCM, with a deduction of about $240-250/ton according to the May futures price in London.
Reais rose 0.54%, the exchange rate rose to 1 USD = 5.6790 Reais on the strength of emerging currencies on speculation that the Fed might soon narrow the stimulus program and raise the basic interest rate in USD. not just 3 times as the market had previously expected. Many commodity markets were covered in the red as most investors cut their net positions currently held to avoid short-term risks.
November trade data from the International Coffee Organization (ICO) shows that global exports totaled 9.25 million bags of coffee varieties, down 12.41% year-on-year. Accordingly, cumulative global coffee exports in the first 2 months of the current coffee crop year 2021/2022 totaled 18.87 million bags, down 8.8% over the same period of the previous crop year. The cause of the decline in exports is attributed to the prolonged congestion in global freight transport, not to a world shortage of coffee.
Coffee futures prices continued yesterday’s trend, with the weakening of London Robusta and flat of New York Arabica, despite the latest inventory report released by the two exchanges. “certification” continued to decline.
According to observers, new hedging selling pressure from coffee producing countries continues to weigh on the two futures exchanges. While the markets were supported by some reports of reduced exports, strong defensive selling from major world producers is not excluded, while Brazil’s 2022 new crop is also coming. near the.
ANhan Van (giacaphe.com)
