Coffee futures prices continue to decline with the forecast that coffee regions in Brazil are about to rain…
Robusta chart London July 2022 session on May 13, 2022
At the end of the last session of the week, the price of Robusta coffee on ICE Europe – London continued to decline. Futures for spot delivery in July decreased by 18 USD to 2,040 USD/ton and for September delivery also decreased by 18 USD to 2,043 USD/ton, significant reductions. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. July spot futures fell another 1.40 cents to 213.90 cents/lb and September futures fell another 1.30 cents to 214.05 cents/lb, significant losses. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 VND, to range from 39,700 to 40,100 VND/kg.
USDX correction and a strong increase in the Reais exchange rate will support coffee prices. However, due to the strong increase in Wednesday’s session, coffee prices continued to decline slightly when the news of frost in the main coffee region southeast of Brazil was not certain.
In particular, the meteorological firm Somar Met. The main Arabica coffee regions in the state of Minas Gerais forecast rain over the weekend, which will add more moisture to the soil and, therefore, reduce the risk of frost when cold air enters these regions.
Although the coffee futures markets had fallen quite sharply until mid-session, the monetary factor supported to prevent the decline as the risk of frost was almost negligible, while the market remained intact. Pressure from this year’s harvest has already begun in Brazil and the Mittaca crop in Colombia.
Indonesia has entered the new harvest for more than a month and is now in the key stage. It is estimated that the average production of Robusta coffee this year will be about 9.3 million bags, down 0.53% compared to the previous crop and Arabica coffee will be stable at an average of 1.3 million bags. This is a factor contributing to the weight of the coffee market in the coming time.
English (giacaphe.com)
