The price of coffee futures dropped after an excessively hot session…
Robusta chart London July 2022 session on 12/05/2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to decrease. Futures for spot delivery in July decreased by 20 USD to 2,058 USD/ton and for September delivery decreased by 19 USD to 2,061 USD/ton, significant reductions. Trading volume remained very low below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. The July spot futures fell 4.60 cents to 215.30 cents/lb and the September futures fell 4.45 cents to 215.35 cents/lb, sharp declines. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, down to range from 39,900 to 40,400 VND/kg.
USDX bounced back to a 19-year high, while a further fall in the reais helped Brazilians boost sales of agricultural exports, causing coffee prices on both futures exchanges to decline again with the bloc. The volume of transactions is not high because of risk aversion.
It seems that the market has also calmed down after the NAAO news that there is a possibility of frost in the coffee growing regions in the South of Brazil from the beginning of next week. (Re-read yesterday’s news May 12, 2022).
However, it is only mid-April, not yet winter in Brazil, and history shows that no frost has occurred during this time.
Perhaps the market thinks that the excessive anxiety for speculation to push the price up yesterday is just an opportunity “earn food now” Therefore, the price of coffee dropped again is inevitable.
The higher the USDX, the more detrimental it is for coffee because the price becomes expensive, while the consumer markets are struggling with the economic recession and excessive inflation.
English (giacaphe.com)
