Speculative capital flows continue to seek safe havens when geopolitical tensions have not shown any positive signs…
Robusta chart London May 2022 session on March 1, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the falling chain to the fifth session. Spot futures in May decreased by 6 USD to 2,084 USD/ton and for July delivery decreased by 16 USD to 2,055 USD/ton, significant reductions. Trading volume very high above average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to increase. The May spot futures rose 3.10 cents to 236 cents/lb and the July delivery futures rose 2.95 cents to 234.50 cents/lb, fairly strong gains. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 VND, to range from 38,900 to 39,400 VND/kg.
The price of coffee futures was mixed after the chain dropped quite significantly on both exchanges. While Arabica in New York has support from Brazil due to carnival extended through Wednesday, has contributed to concerns about supply shortages, given the backdrop of the inventory report at the Exchange “certification” still hovering around a 22-year low.
On the contrary, even though it rebounded strongly at the beginning of the session, Robusta coffee in London could not avoid the downward pressure. (see price chart). In addition to the basic factors such as the upcoming supply, which is expected to be abundant because the two major producers Brazil and Indonesia are about to enter the harvest of the new crop, there is also the liquidation of the position of the Financial Funds because they are holding a very large amount of net buying, while the pressure of US Federal Reserve (Fed) USD will increase the basic interest rate closer and closer.
According to January Trade Report of the International Coffee Organization (ICO), Global coffee exports in the first four months of the current crop year 2021/2022 were only 41.8 million bags, down 1.5% year-on-year, due to unresolved logistics issues. .
Meanwhile, the war situation in Ukraine became more and more tense after the deadlocked peace talks pushed gold and crude oil prices to continue to rise hotly. Many raw materials have become expensive as USDX continues to gain momentum, continuing to cause difficulties for coffee producing and exporting countries in the short and medium term.
English (giacaphe.com)
