During the week, the balancing and adjusting of speculative positions before the first announcement day (FND) caused coffee futures prices to fluctuate strongly…
For the whole week of July 2024, the London market had 3 decreasing sessions at the beginning of the week and 2 consecutive increasing sessions at the end of the week. The price of Robusta coffee for March delivery decreased by a total of 118 USD, or a decrease of 3.52%, to 3,231 USD/ton and for May delivery, a total decrease of 76 USD, or a decrease of 2.36%, to 3,141 USD/ton. tons, the reductions are very significant. Trading volume remains quite high above average.
Similarly, the New York market also had 3 decreasing sessions at the beginning of the week and 2 increasing sessions at the end of the week. Arabica coffee futures for March delivery decreased by a total of 5.45 cents, or a decrease of 2.78%, to 190.85 cents/lb and for May deliveries, a total decrease of 4.80 cents, or a decrease of 2.51 cents. %, to 186.70 cents/lb, very significant reductions. Trading volume remains well above average.
The price of green coffee in the Central Highlands market decreased by 0 – 500 VND, fluctuating in the range of 79,300 – 80,100 VND/kg.
During the week, DXY increased 0.11% after the report that the US producer price index (PPI) increased slightly above the expected level, causing speculation that the US Federal Reserve (Fed) will delay cutting interest rates until May. 6 years now. Soaring long-term Treasury yields have caused most commodity prices to rise.
The first notification date (FND), for New York is February 21 and for London is February 26, has prompted funds and speculators to balance their net positions to minimize the risk of causing coffee prices to fluctuate. The term fluctuated strongly in the past session due to previous “overbought”.
Robusta coffee inventories issued by the London Exchange Certified and monitored, as of Friday, February 16, have decreased by 5,050 tons, or 20.09% compared to a week before, down to register at 20,090 tons ( about 334,833 bags, 60 kg bags), a new record low, will continue to support Robusta coffee prices in the short term, in the context that global Robusta supply is still limited and in the domestic market of many countries. Main production still has price resistance phenomenon.
Anh Van (giacaphe.com)
