If you follow the developments coffee market In the past session, it must have been very difficult to understand why in just a split second, the price of London coffee increased sharply (May 2016 term) to $59/ton. And what’s even more strange is that it happened so fast – so fast that I didn’t have time to see, a friend of mine compared it to “increasing like stealing”.
Having followed and invested in this market for a long time, these shocking bounces are not too surprising to me. But “shock” like today is something new. Normally, I would sleep with that surprise, but today when I read the hot news article and saw Mr. Kinhvu’s response (see response), I couldn’t sleep.
Below are a few points that I think are unreasonable in your explanation Kinhvu:
- Will the positions and orders of investors (those participating in buying and selling) be announced on the floor? Why does SHARK know these things so well (according to feedback)
- The purpose of setting the price to reach the threshold Buy Stop good Sell Stop (of the fry) of SHARK What is that?
- If these things are really happening, will the liquidity and trust we place in the transparency of these coffee floors still exist?
A few things to share with the community, we look forward to receiving comments from everyone.
Hoang Nguyen
Bao Loc, Lam Dong
People’s opinions:
Friend Group
The world developed so long before us that most goods have trading floors. But now the floor no longer retains the purpose of intermediary buying and selling, supply and demand, but it has become a place to make super high profits for large financial corporations.
Will the price of Vietnamese Robusta be stable and high if we work together to:
1. Coffee traders, especially coffee exporting companies, agree not to sell “withholding” or with minimum restrictions, not to sell in advance, not to participate in “paper goods”. Vietnam accounts for nearly 50% of world Robusta production. If done, it will significantly reduce selling pressure on the floor.
2. The State built warehouses and issued standard certificates for each type of coffee such as buckets, r1, r2… so that business people could send goods and banks could rest assured to lend to the right people. If we can do it, there will not be a case of 1 coffee warehouse (waste) but 7 banks lending capital.
Can VICOFA’s $2 fund be used for implementation? Because if collected enough every year, this fund is quite large, used to support and help those who contribute to the fund, the production chain from farmers to businesses.
3. Control and plan coffee growing areas, encourage and help farmers care for coffee according to international standards so that the products are of high quality.
Does anyone notice or care why the price of Vietnamese coffee, as well as some other products, is always the lowest in the world? Brazil, Indonesia, India…. Coffee sales are much higher than ours
“The floor” is always a place to make profits very quickly but also lose a lot, and not everyone who participates in the floor is knowledgeable about the floor. Joining the “floor”, out of 100 people, 99 of them are bait for the “shark”
