The market has a phenomenon of speculation sale New York buy London when the price difference between the two floors was too high, although the trading volume in the session was quite low …
Robusta London T5 / 2021 chart session on March 17, 2021
Ending the session, Robusta coffee prices on ICE Europe – London continued to increase. May spot futures increased by 6 USD, to 1,412 USD / ton and July futures also increased by 6 USD, to 1,436 USD / ton, the slight increase. Trading volume maintained very low below average.
In contrast, Arabica coffee prices on the ICE US – New York floor reversed and decreased. May futures fell 0.95 cents, down 133.55 cents / lb and July futures also dropped 0.95 cents, to 135.5 cents / lb, the significant decline. Trading volume below mGermany medium.
The price of coffee beans in the Central Highlands provinces increased by 100 VND, up fluctuating in the frame of 32,600 – 33,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,496 USD / ton, FOB – HCM, with the plus difference at 50-60 USD / ton in term of July in London.
Reais copper fell 0.53%, down to 1 USD = 5.5830 Reais due to the reaction to the decision of the Federal Reserve to not change the USD interest rate (Fed) and remained low 0 – 0.25% / year until the end of 2023, instead of the end of 2024 as declared due to notice “The economy recovers faster than previously forecast” . Meanwhile, the Monetary Policy Committee (Copom) of Brazil announced to raise the Reais copper interest rate by 0.75% to 2.75% / year, higher than the market’s expectation to maintain the inflation rate. goals and risk balance. However, the impact from this decision only takes place from today, announced by Copom late yesterday.
Coffee prices on the two floors were mixed with relatively low trade volume, waiting for news from related monetary policies. Reais copper weakening again also contributed to support Brazil’s strong sale of coffee for export, causing Arabica coffee prices to reverse and decline. The speculation is not ruled out by observers “Sell New York, buy London” because the price gap between the two exchanges is currently too high.
The Vietnamese market recorded signs of farmers selling coffee to store pepper, as pepper prices were rising too hot while London floor Robusta coffee prices remained lumbering at a prolonged low.
English (giacaphe.com)
