Commodity funds back to increasing purchases as a hedge against inflation…
Robusta chart London May 2022 session on 08/04/2022
At the end of the last session of the week, the price of Robusta coffee on ICE Europe – London reversed to increase. Spot futures in May increased by $27 to $2,091 per ton and for July delivery increased by $30 to $2,096 per ton, very significant increases. Trading volume remain above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same trend of recovery. The May spot futures rose 5.50 cents to 231.65 cents/lb and the July delivery futures rose 5.40 cents to 231.55 cents/lb, fairly strong gains. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, and fluctuated in the range of 40,100 – 40,700 VND/kg.
Coffee price recovered on both futures exchanges as speculation returned to increase buying after aggressively liquidating previous net positions because of pressure on option expiration. According to Barchart.com, the increase in purchases at this time as a measure for the Commodity Funds to hedge against inflation. Meanwhile, concerns about tighter global supply continue to push coffee prices higher.
The International Coffee Organization’s (ICO) February trade report shows that global coffee exports in the first five months of the current coffee year 2021/2022 fell 0.8 per cent year-on-year. before, down to only 53.2 million bags.
At the same time, the ICO also reported that global coffee production in the 2021/2022 crop year totaled 167.2 million bags, down 2.10% from the previous crop, mainly due to the cyclical Brazilian Arabica production. period “two years one” for low yield.
English (giacaphe.com)
