When the prime interest rate of the Reais coin was higher, it meant that Brazilian farmers demanded to sell coffee at a higher price.
Robusta London T5 / 2021 chart session on March 22, 2021
Ending the first session of the week, Robusta coffee prices on ICE Europe – London reversed and recovered. May spot futures increased 18 USD, to 1,398 USD / ton and July futures increased 16 USD, to 1,420 USD / ton, the very significant increases. Trading volume very low below average.
Similarly, Arabica coffee prices on the ICE US – New York floor also reversed and increased. May spot futures increased 1.1 cents, to 130.1 cents / lb and July futures rose 1.05 cents, to 132.1 cents / lb, the significant increases. Trading volume maintained on mGermany medium.
The price of green coffee in the Central Highlands provinces increased by 300-400 VND, up fluctuating in the frame of 32,300 – 32,900 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,480 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais fell 0.6%, to $ 1 = 5.5180 Reais due to the negative impact of the Turkish Lira’s sharp depreciation on emerging currencies and the second covid-19 pandemic broke out. The market raised concerns about the poor health system, making Brazil the second country with the most infections and deaths, after only the US.
Coffee prices jumped at the end of the session when the market received a report from Weather Forecast Somar in Brazil. Rainfall is expected to be plentiful over the past week in the state of Minas Gerais, Brazil’s main Arabica coffee-growing state, only 86% of the historic average due to a heat wave that prevented cold rain from entering, according to the report. the coffee regions in the south. This has led to concerns that Brazil will enter a dry winter with low temperatures, the potential for frosts this year.
It will be too early to discuss the Brazilian winter weather at this time, although it has long been perceived by the market “Weather business season” on derivative coffee floors.
A survey by Emater-MG, the Agricultural Extension and Technical Support Company of Minas Gerais State, reported a 40.7% decrease in production this year, of which the decline was due to the early drought. 20.7% and a cyclical decrease “Every two years” accounting for 20%. It is estimated that this year the state of Minas Gerais will harvest about 17.9 million bags, down to 10.3 million bags. It is known that related industries have supported 150 million Reais credit with a 2-3 year grace period for coffee farmers in drought-affected areas to overcome difficulties.
English (giacaphe.com)
