The market is showing more concern about Robusta coffee exports from Southeast Asia than about Brazilian coffee production in 2022 and next…
Robusta chart London September 2021 session on August 10, 2021
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to increase. The September spot term increased by 73 USD, to 1,858 USD/ton and the November delivery term increased by 66 USD, to 1,863 USD/ton, very strong increases. Trading volume at the “terrible” level, rarely seen.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. September spot futures increased by 2.65 cents to 182 cents/lb and December delivery also added 2.65 cents to 185.10 cents/lb, very significant gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 900 – 1,000 VND, to range from 37,300 to 38,100 VND/kg.
The price of exported Robusta coffee grade 2.5% black broken, stood at 1,783 USD/ton, FOB – HCM, with a deduction of 70 – 80 USD/ton according to the November futures price in London.
The reais increased by 0.95%, the exchange rate rose to 1 USD = 5,1960 Reais in the belief that the Government would comply with the spending ceiling and Copom’s more aggressive stance on inflation. While USDX continued to strengthen, the market speculated that the Fed would cut economic stimulus measures and possibly raise the basic USD interest rate sooner than expected.
The price of coffee on the two exchanges continues the upward trend following the current focus of the coffee derivatives markets this month (Re-read yesterday’s news, August 10, 2021).
The latest assessment of the damage of the July frosts by a senior official in the Brazilian Agriculture industry is the possibility of damage up to 10 million bags, mainly of Arabica coffee.
The movements of the two futures exchanges in the last session showed the market’s concern about the export of Robusta coffee from Southeast Asia in the short term rather than Brazil’s coffee output in 2022 and beyond.
Note, short-term dry weather is suitable for post-harvest coffee plants. Moreover, Brazilian coffee farmers have increased their initiative in watering their plants without being completely dependent on rainwater as before.
English (giacaphe.com)
