In the coming days, speculators will balancei adjust the speculative positions held due to option expiration in both markets…
Robusta chart London July 2022 session on 08/06/2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor continued to decline. Futures for delivery in July decreased by 4 USD, to 2.10 USD/ton and for September delivery also decreased by 4 USD, to 2,117 USD/ton, slight decreases. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. July spot futures fell another 0.30 cents to 231.85 cents/lb and September futures fell another 0.35 cents to 232 cents/lb, slight losses. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 0-100 dong, to range from 41,200 to 41,700 dong/kg.
After the release of somewhat weaker world economic growth forecasts, the Brazilian market had expected that the basic interest rate of the Reais was likely to increase much more to be able to prevent inflation, despite the current challenges. negative external impact as the economic indicators of the EU and North America continued to decline. The continued decline of the reais has supported Brazilians to boost coffee sales, even as China reopens and prices for most raw materials rise.
National Coffee Federation (FNC) in Colombia reported coffee production in May at 1,017,000 bags, an increase of 401,000 bags, or 65.09% year-on-year. Therefore, cumulative coffee production in the first 8 months of crop year 202/202/22 has decreased by 1,004,000 bags, or 11.14% decrease compared to the same period of the previous crop year. with a total of 8,005,000 bags.
FNC – Colombia also reported that coffee exports in May reached 944,000 bags, up 599,000 bags, or 173.63% higher than the same period last year. Therefore, cumulative coffee exports in the first eight months of the current crop year 2021/2022 have totaled 8,258,000 bags, down 233,000 bags, or 2.74% lower than the same period last year. The reason for the increase was due to the social unrest following the protests that took place in the two months of May + June 2021, causing a decrease in exports last year. In addition, logistics problems have also caused the leading producer of high-quality wet-processed Arabica coffee to have had erratic export results in recent months.
According to observers, the derivative coffee markets nearing the expiration of the July options contract is also a motivation for speculators to continue to balance and adjust their speculative positions in the coming days. .
English (giacaphe.com)
