Coffee futures prices continued to fall deeply in the context of the deadlocked second round of negotiations between Russia and Ukraine.
Robusta chart London T5/2022 session on 03/03/2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor had the seventh consecutive decrease. Spot futures in May decreased by 17 USD to 2,013 USD/ton and term for July delivery decreased by 11 USD to 1,991 USD/ton, significant reductions. Trading volume remain above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also continued to decline. The May spot futures fell another 6.30 cents to 222.90 cents/lb and the July delivery futures fell another 6.50 cents to 221.65 cents/lb, very strong declines. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by another 200-300 VND, down to the range of 38,000 – 38,500 VND/kg.
The second round of negotiations between Russia and Ukraine only reached an agreement to establish “humanitarian corridor” without any significant further progress, so the gunfire did not subside in southern Ukraine. While rising global inflation continues to push gold prices, crude oil prices to new highs and US stocks reversing their losses, USDX’s continued rally has dragged most of the commodity markets into turmoil. “unpredictable”.
The world coffee futures price extended the chain of less visible declines. Concerns about falling consumption and tight spending in the short and medium term have prompted strong speculation and liquidation, causing the price of New York Arabica coffee to fall to a 2-month low, while the London Robusta is hovering around the psychological 2,000 threshold. $, with further downside expected as supply pressure remains intact.
It is expected that today is the last session of the week, the balance and adjustment of speculative positions in both markets will support future coffee prices to regain some of their losses.
English (giacaphe.com)
