Yields on long-term bonds The US Treasury has soared so that speculative capital has been poured in, pushing coffee futures prices at a disadvantage …
Robusta London chart May / 2021 week 13 (from March 29, 2021 to April 3, 2021)
For the whole week 13, the Londons market declined throughout the week. Robusta coffee futures for immediate delivery in May decreased by 74 USD, or 5.29%, down to 1,325 USD / ton and futures for July delivery decreased by 66 USD, or 4.66%, to 1,350 USD. / ton, very strong reductions. Trading volume above average.
Similarly, New York market had 3 decreasing sessions and 1 gaining session. Arabica coffee futures for immediate delivery in May decreased all 6.9 cents, or 5.37%, down to 121.6 cents / lb and futures for July delivery fell all 6.95 cents, or down 5, 33%, to 123.55 cents / lb, the reductions are also very strong. Trading volume quite high above average.
The price of coffee beans in the Central Highlands market has decreased by 1,000 – 1,100 VND, down to fluctuate in the range of 31,500 – 31,900 VND / kg.
Double-futures coffee prices plummeted as Reais weakened again and concerns of the third outbreak of covid-19 led many countries to establish stronger social distancing measures that would lead to demand. global coffee consumption decreased.
Meanwhile, the yield on the long-term US Treasury bonds soared to a record, attracting speculative capital inflows that pushed coffee prices on the derivative markets at a disadvantage.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that, as of Tuesday March 23, the non-commercial speculation division reduced their net buying position by 23, 52%, down registered to net buy at 21,587 lots, equivalent to 6,199,819 bags. This net long position is likely to decline further after a period of mostly negative trade 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 6.06%, down to post. net buying in 17,561 lots, equivalent to 2,926,833 bags. This net long position is likely to have declined further after a period of mostly negative trade since then.
Inventory of Robusta coffee was certified and tracked by the London floor, as of Monday, March 29, it increased by 510 tons, or 0.34% from a week earlier, to registration at 148,780 tons. (equivalent to 2,479,667 bags, 60 kg bags).
Catholic Easter Week also slowed coffee business in many producing and exporting countries.
Note:
Monday After Easter, April 5, 2021, London markets are closed with no transactions, New York markets are late.
English (giacaphe.com)
