It is expected that coffee prices will soon recover when the May futures contract is completed due to the still high demand of the consumer markets…
Robusta chart London T5/2022 session on April 19, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. The May spot futures dropped another $13 to $2,074 per ton and the July delivery futures dropped another $11 to $2,088 per ton, significant reductions. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York extended the falling chain to the fifth session. The May spot futures fell another 2.20 cents, to 221.30 cents/lb, and the July delivery futures fell another 2.05 cents, to 221.70 cents/lb, very significant reductions. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by another 100-200 VND, to range from 39,900 to 40,400 VND/kg.
US stocks and USDX rose sharply, due to fears of high inflation and more intense war in Eastern Europe, which contributed to putting coffee derivatives prices at a disadvantage, while gold and crude oil prices remained stable. uptrend.
The price of coffee on both exchanges continued to decline before the expiration of the May futures contract, which was speculated by the market as speculators held a net long position. “exceed” need to be balanced and liquidated. The market expects that before the first delivery announcement (April 21), the price of New York Arabica coffee will recover somewhat. However, the pressure on this floor is still significant with the March 2022 inventory report increased by the Coffee Bean Association (GCA) in the US.
According to observers, despite being pulled down from the New York Stock Exchange, London Robusta coffee prices still have short-term support demand, so they have recovered somewhat from their previous losses. (see trading chart on 19/04/2022). However, only when speculative liquidation, net position adjustment and completion of the May futures options contract will be clear, the specific trend will be clear, while the pressure to harvest this year’s new Robusta crop of Brazil and Indonesia will be clear. also caught oil.
The preliminary data report of Vietnam Customs shows that coffee exports in the first half of April reached 72,358 tons (about 1.2 million bags), up 29.28% year-on-year, also contributing to the pressure on the Robusta market in the short term.
Trade in Vietnam’s domestic market remained quiet because farmers continued to resist prices when the reference price of London Robusta coffee floor was still too low.
English (giacaphe.com)
