USDX weakening, the reais exchange rate is currently at a favorable level, has motivated Brazilians to sell new crops strongly…
Robusta chart London July 2022 session on June 20, 2022
Ending the trading session alone at the beginning of the week, the price of Robusta coffee on the ICE Europe – London floor continued to weaken. Futures for spot delivery in July decreased by 1 USD to 2,064 USD/ton and for September delivery decreased by 2 USD to 2,077 USD/ton, a slight decrease. Trading volume very below average.
Meanwhile, the Arabica coffee market in New York US Juneteenth compensatory holiday, closed all day, no trading.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 VND, to range from 40,500 to 41,100 VND/kg.
The price of Robusta coffee on the London floor continued to weaken due to the lack of speculation in the market, recording very low trade volume. (see Robusta coffee price chart). It seems that the market trade is only to liquidate positions before the July futures option expiration date, as the pressure of the monetary base rate that has just been raised by central banks in the past week has increased the risk, while global coffee consumption is expected to decline because inflation has risen too high.
The Indonesian Trade Agency reported that Robusta coffee exports in May only reached 43,888 bags, down 116,902 bags, or 70.83% lower than the same period last year. Therefore, the cumulative exports of Indonesian Robusta coffee in the first eight months of the current coffee crop year 2021/2022 totaled 1,895,759 bags, down 640,483 bags, or up to 25.25% lower than the same period last year. previous service. Although reported export figures have fallen sharply year-on-year, export volumes over the past eight months are considered to be in line with the five-year average of exports over the same period.
Uganda Coffee Development Authority (UCDA) reported coffee exports in May reached 455,166 bags, down 38,258 bags, or 7.76% year-on-year decrease, of which Robusta coffee exports reached 350,312 bags, down 18.35% over the same period and arabica coffee exports reached 104,854 bags, up 62.86%. According to UCDA, cumulative coffee exports in the first eight months of the current coffee crop year 2021/2022 totaled 3,741,349 bags, down 150,066 bags, or 3.86% less than the same period last year.
According to observers, the absence of the New York market because of National Holidays in the US, the coffee trade in the London Robusta market seems to have lacked leadership, investors do not identify a new trend right away. When the interest rate pressure on loans also changed, it created a quiet and lifeless trading session.
Although USDX decreased slightly, the price of Robusta coffee has not prospered because the selling pressure of new crop coffee is still strong from Brazil, the world’s leading coffee producer, because the Reais exchange rate is currently at a favorable level when they collect get more local currency.
English (giacaphe.com)
