Although the basic interest rate of Reais copper was raised by Copom Brasil to a higher level than market expectations, but long-term US Treasury bond yields continued to rise to a record level, attracting speculative capital inflows on derivative markets. , causing coffee prices to weaken again …
Robusta London chart May / 2021 week 11 (from March 15, 2021 to March 20, 2021)
For the whole week 11, London market had 3 declining sessions and 2 gaining sessions. Robusta coffee futures for immediate delivery in May decreased by all 23 USD, or 1.64%, down to 1,380 USD / ton and futures for July delivery also decreased by 23 USD, or 1.61%, to 1,404 USD / ton, very significant reductions. Trading volume in average.
Similarly, New York market had 4 decreasing sessions and 1 gaining session. Arabica coffee futures for immediate delivery in May decreased all 4 cents, or 3.01%, down to 129 cents / lb and futures for July delivery decreased by all 3.9 cents, or 2.89%. 131.05 cents / lb, the declines are quite strong. Trading volume maintained quite high above average.
The price of coffee beans in the Central Highlands market decreased by 300-400 VND, down to fluctuating in the frame of 32,000 – 32,500 VND / kg.
Coffee prices weakened again as Brazilians increased their sales due to support from weaker Reais copper and weather reports on the coffee belt in southeastern Brazil had good rainfall to support the growing crop. new season. Meanwhile, long-term US Treasury bond yields soared to record levels, attracting speculative capital inflows, abandoning derivative commodity exchanges, notably coffee exchanges.
The Central Bank of Brazil (BC) decided to raise the Reais copper base interest rate by 0.75%, from 2% to 2.75% / year, exceeding market expectations but causing speculation in the country. These products also contribute to additional disadvantages for coffee prices in the short term.
In addition, the Safras Mercados report in São Paulo said that Brazilian farmers sold about 28% of their new crop to be harvested, about 10% higher than at the same time last year. This has contributed to the decline in coffee prices despite the recent phenomenon of price resistance among farmers in this country.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that as of Tuesday March 9, the non-commercial speculation division had reduced their net buying position by 18, 78%, down registered to net buy in 29,470 lots, equivalent to 8,354,614 bags. This net long position is most likely to have increased slightly after a more positive trading period since then.
The latest CFTC report from Robusta coffee market in London shows that, by the same reporting period, short-term speculation of money management funds has cut their net buying position by 28.36%, down to the post. net buying in 20,398 lots, equivalent to 3,399667 bags. This net long position is most likely to have eased slightly after a period of mostly sideways trade since then.
Inventory of Robusta coffee certified and tracked by the London floor, as of Monday, March 15, has increased by 250 tons, or 0.18% from a week earlier, to registration at 144,160. tons (equivalent to 2,398,500 bags, 60 kg bags).
English (giacaphe.com)
