New York coffee futures prices were supported when speculative capital flow turned to derivative commodity markets in response to rumors that the US government would increase income tax …
Robusta London T5 / 2021 chart session on April 22, 2021
Ending the session, Robusta coffee prices on the ICE Europe – London floor adjusted to decrease. May spot futures were unchanged, still at $ 1,379 / ton, July futures fell $ 2, down $ 1,408 / ton and September futures dropped $ 3, to $ 1,424 / ton, declines. light. Trading volume quite high above average.
In contrast, Arabica coffee prices on the ICE US – New York floor returned to the uptrend. July spot futures increased 1.95 cents, to 136.15 cents / lb and futures for September delivery also increased 1.95 cents, to 138.05 cents / lb, the increase is very significant. Trading volume decreased in mGermany medium.
The price of coffee beans in the Central Highlands provinces remained unchanged, still fluctuating in the frame of 32,400 – 33,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,468 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais copper increased strongly by 1.65%, the exchange rate rose to 1 USD = 5.4550 Reais, increasing for the seventh consecutive session with the expectation that the fiscal risk will be tightly controlled by the Brazilian government. However, USDX continued to recover slightly, despite speculation that the US government would increase income tax, causing concern for stock markets but commodity markets benefited.
Robusta coffee prices on the London floor leveled off before the pressure to expire May option contracts as speculated. (read yesterday’s news April 22)
In contrast, the price of Arabica coffee on the New York floor returned to the uptrend when the support of the Reais copper strengthened, causing Brazilians to decrease selling and the weather report showed signs of drought before winter this year sparked worries. The frost season stimulated early speculation to return to the derivative coffee markets and brought futures prices in New York up to 5-week highs.
Note, frost in Brazil only forms when the weather is dry in winter, from June to August each year. This is also the period of focus on harvesting Arabica coffee in the new crop, so Brazilians often reduce sales. Trade in the world coffee market at this stage is often thought to be “Weather business”.
English (giacaphe.com)
