In the first half of this week, the world coffee market will be closely watching winter weather news in the main coffee growing regions in southern Brazil…
Robusta London chart September 2022, week 27 (July 4, 2022 – July 9, 2022)
For the whole week of 27, the London market had 4 consecutive decreasing sessions and 1 gaining session at the end of the week. The price of Robusta coffee for September delivery fell by all 25 USD, or 1.25%, to 1,981 USD/ton and for November delivery fell all 24 USD, or 1.20%, to 1,982 USD. /ton, the reductions are very significant. Trading volume on average.
In contrast, the New York market had 3 consecutive decreasing sessions and 1 increasing session at the end of the week. The price of Arabica coffee for September delivery fell all 4.20 cents, or 1.87%, to 220.45 cents/lb and December delivery fell all of 3.90 cents, or 1. 76%, to 217.60 cents/lb, very significant reductions. Trading volume above average.
The price of green coffee beans in the Central Highlands market decreased from 0 to 100 dong, to range from 39,400 to 40,000 dong/kg.
Coffee futures prices experienced another week of slight volatility, with a series of declines following the momentum of the previous week, but the last session of the week recovered significantly.
Coffee futures markets continued to come under downward pressure on fundamentals following positive export results reports from major coffee producers and the greenback rising throughout the week following the announcement. The minutes of the Fed meeting showed the determination to prevent excessive inflation and the simultaneous response of central banks in tightening monetary policies to contribute to preventing the world economy’s recession in the context of the global economic crisis. The world is falling into an energy crisis and the war in Eastern Europe.
USDX continues to be strong in commodity markets, causing prices of many commodities to come under downward pressure, including the gold market, which is often chosen by speculation as a haven and the crude oil market, which is having the active support of investors. energy crisis.
However, a report from New York showing that inventories of ICE certified Arabica coffees have fallen to a 23-year low has helped support coffee prices in the short term.
Highlights of the week are Market Report June of the International Coffee Organization (ICO) shows that global coffee exports in May totaled 10.80 million bags, up 9.99% year-on-year, contributing to cumulative global coffee exports in the first eight months of the crop year. Current coffee 2021/2022 totals 88.51 million bags, an increase of 1.33% over the same period last crop. The ICO has maintained its forecast for global coffee supply at 2.10% lower than the previous crop, totaling 167.20 million bags in coffee year 2021/2022. As a result, the global consumption market is short of 3.1 million bags, as the world’s largest coffee producer and exporter Brazil falls into a year of cyclically low output. “two years one”. This is the reason why coffee inventories are constantly decreasing and roasters in North America have to buy instant coffee at sky-high prices.
Report of Federation of Coffee Growers (FNC) in Colombia showed that coffee exports in June reached 939.00 bags, an increase of 5.51% year-on-year. This has contributed to the accumulation of coffee exports in the first 9 months of the current coffee crop year 2021/2022 reaching a total of 9,197,000 bags, an increase of 184,000 bags, or an increase of 1.96% compared to the same period of the previous crop year. The increase was caused by civil unrest and protests that took place from May to June 2001 which was a contributing factor to the increase in coffee exports in June this year compared to the same period, in when logistics problems persist until now.
Vietnam General Department of Customs Preliminary data reports show that coffee exports in June totaled 137,403 tonnes (equivalent to 2,290,050 bags, 60 kg bags) down 3.5% month-on-month, bringing exports up in the first half of the calendar year. reached a total of 1,018,650 tons (about 16.98 million bags), up 20.7% over the same period last year. The reason for the increase was not due to an abundant supply, but to a decrease in exports in the same period last year because of the need to implement social distancing when the Covid-19 epidemic broke out.
Investors in the financial markets are still watching developments that will affect the policy meeting of the US Federal Reserve (Fed) on the next two days, July 26 and 27, with speculation that the Fed will maintain an increase of 0.75% to actively prevent a general economic downturn.
English (giacaphe.com)
