Although the price of coffee on the two exchanges rebounded strongly with the price of gold and crude oil, it is still uncertain, so the trade volume is still not high…
Robusta chart London May 2022 session on 08/03/2022
At the end of the session, the price of Robusta coffee on ICE Europe – London chose an uptrend. Futures for delivery in May increased by 59 USD, to 2,094 USD/ton and term for delivery in July increased by 57 USD to 2,071 USD/ton, strong increases. Trading volume live normal.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. The May spot futures rose 8.65 cents to 232.90 cents/lb and the July delivery futures rose 8.60 cents to 231.70 cents/lb, very strong gains. Trading volume remained quite above average.
The price of green coffee beans in the Central Highlands provinces increased from 1,100 to 1,200 VND, to range from 39,600 to 40,200 VND/kg.
The third round of negotiations between Russia and Ukraine continued to be deadlocked when the two sides still could not find any possible common ground. The derivatives markets with high liquidity such as gold and crude oil continued to heat up with the sound of Russian bombs besieging Kiev.
Coffee prices on both world futures exchanges, after the indecision in the first half of the session, chose the direction of increasing gold and crude oil prices, which is rare. (see price chart).
US President Biden’s declaration to ban the import of oil products from Russia with bipartisan consensus is a stronger measure to end the war in Eastern Europe. In the short term, this will hurt many economies around the world after many years of being negatively impacted by the Covid-19 epidemic. However, that is the price to pay when needed “fight for freedom”.
USDX reversed down and US stocks continued to decline, causing speculation to shift capital flows and this time, coffee derivatives exchanges were selected after the previous series of very strong declines.
The reais rate increased to 5.0530 = 1 USD along with the report of less rainy weather in the main coffee regions in the south also caused Brazilians to reduce selling which were the factors that pushed speculation back to the two exchanges. buying.
However, observers still believe that most of the main producers are still outside the market because inventories are also small, while the dry weather in southern Brazil has only lasted for a short time. The time is short, so the price trend is still not really clear.
English (giacaphe.com)
