The report of Vietnam’s exports in March increased sharply, combined with the pressure to expire in the May futures contract, which pulled down world coffee futures prices…
Robusta chart London May 2022 session on 07/04/2022
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 29 USD to 2,064 USD/ton and for July delivery decreased by 24 USD to 2,066 USD/ton, significant reductions. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. The May spot futures fell another 1.45 cents, to 226.15 cents/lb, and the July delivery also fell another 1.45 cents, to 226.15 cents/lb, significant declines. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 40,100 to 40,700 VND/kg.
It is not surprising that the price of coffee on the two exchanges continues to decline as USDX continues to increase again, causing more and more risk aversion, while the USD base interest rate is about to be raised, which will put pressure on most people. out of commodity prices.
According to observers, the price of coffee on both exchanges is dragged down at the moment not only because of the expiration of the May futures option contract, but also because the supply from Vietnam has increased sharply. Technical indicators show that the New York Arabica market has fallen into the zone “overbought”, Speculators need to liquidate and adjust their positions.
According to a report by the General Department of Vietnam Customs, coffee exports in March reached 211,015 tons (about 3.52 million bags), an increase of 51.4% over the previous month, bringing coffee exports to 3. the first month of this year increased by 28.3% over the same period last year.
Clearly these fundamental news has put some pressure on the coffee futures markets and has contributed to closing the inverse price gap, which is also expected to close this month.
English (giacaphe.com)
