The price of Arabica coffee this year will reach 120 cents/lb, which is a rather unexpected prediction of the market, even though the world’s key economies are recovering quickly from the Covid-19 epidemic.
Robusta chart London July 2021 session on June 2, 2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the rising chain to the sixth session. Futures for spot delivery in July increased by 10 USD, to 1,601 USD/ton and for September delivery increased by 12 USD, to 1,627 USD/ton, a significant increase. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York adjusted up. July spot futures rose 0.10 cents to 161.15 cents/lb and September futures also gained 0.10 cents to 163.15 cents/lb, slight gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, to range from 33,700 to 34,700 VND/kg.
The price of exported 2.5% black Robusta coffee stood at $1,627/ton, FOB – HCM, according to September futures prices in London.
The reais increased by 1.20%, to 1 USD = 5.0840 reais, the highest level since the beginning of this year after the optimism of the economy and foreign capital inflows into Brazil. While the Fed’s report showed solid growth in the world’s leading economy.
The price of Robusta coffee extending the next increase is quite surprising, while the main producing countries such as Brazil and Indonesia have had a new crop that has just been harvested, temporarily compensating for the shortage of Vietnamese supply due to the market The domestic market is still resistant to prices.
Arabica coffee price corrected to rise again even though technical indicators showed that the New York market had entered the zone “overbought”.
Weather reports from Brazil show that the main coffee producing regions in the south lack rain “serious” will negatively affect the recovery of coffee plants after harvest. While this year’s winter forecast will continue to be a dry winter, it will adversely affect Brazil’s coffee production next year and beyond.
Of note, coffee traders in São Paulo, the heart of Brazil’s coffee trade, are speculating that New York futures prices will hit 120 cents/lb this year, ahead of the possibility that the Fed will raise interest rates soon. USD base rate due to inflation exceeding expectations.
English (giacaphe.com)
