Futures prices returned to the uptrend on both exchanges when Brazil started to harvest the new crop this year with forecasts for a serious drop in output …
Robusta London T5 / 2021 chart session on April 8, 2021
At the end of the session, Robusta coffee prices on ICE Europe – London reversed and increased. May spot futures increased 16 USD, to 1,345 USD / ton and July futures rose 20 USD, to 1,369 USD / ton, the very significant increases. Trading volume in average.
Similarly, Arabica coffee prices on the ICE US – New York floor returned to the uptrend. May spot futures increased 1.1 cents, to 127.85 cents / lb and July futures rose 1.05 cents, to 129.75 cents / lb, the significant increases. Trading volume maintained very high above mGermany medium.
The price of coffee beans in the Central Highlands provinces increased by 200-300 VND, up fluctuated in the frame 31,700 – 32,300 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,429 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais currency rose 1.27%, exchange rate rose at 1 USD = 5.5740 Reais in the context of general positive currency of emerging countries reacting to Fed’s dovish stance on economic stimulus issue. causing the long-term US Treasury bond interest rate to decline. Meanwhile, the Central Bank of Brazil (BC) confirmed that it would consider increasing the Reais copper interest rate at the next May meeting.
Weak USD is an opportunity for most commodity prices to bounce back. Coffee prices on two futures exchanges were no exception, although the market had news that Colombian coffee exports in March rose sharply by 21% over the same period last year, to 1.14 million bags of Arabica coffee. Perhaps because Colombia’s exports in the same period last year were too low, not necessarily because this year exports increased.
Meanwhile, Brazil Trade reported coffee exports in March reached 4.03 million bags, up 32.3% year-on-year, maintaining a good momentum in coffee exports since the harvest. “Good season” 2020. However, market observers say that because of the strong increase in exports in the past few months, the supply of the Brazilian crop will no longer be abundant. That is also a factor contributing to world coffee prices returning to the uptrend.
A report from Indonesia, the world’s third largest producer of Robusta coffee, showed that March exports were only 99,292 bags, down 55.61% year-on-year, contributing to the accumulation of exports in the first 6 months of the year. Current coffee season 2020/2021 reaches a total of 1,245,550 bags, down 25.20% from the same period last year.
English (giacaphe.com)
