Reais exchange rate continued to strengthen, supported coffee futures prices to continue the recovery…
Robusta chart London T5/2022 session on 11/04/2022
At the end of the first session of the week, the price of Robusta coffee on ICE Europe – London continued to recover. The spot futures in May increased by 17 USD, to 2,108 USD/ton and the term for delivery in July increased by 21 USD, to 2,117 USD/ton, very significant increases. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same trend of recovery. The May spot futures added 4.95 cents to 236.60 cents/lb and the July delivery futures added 5 cents to 236.55 cents/lb, strong gains. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces increased by 300-400 VND, up to range from 40,400 to 40,900 VND/kg.
Coffee price continued the rally as speculation returned to increase buying when there were more supportive fundamentals and speculation about future supply was still limited.
According to the National Agricultural Forecasting and Supply Company (CONAB) under the Brazilian Ministry of Agriculture, its experts are conducting fieldwork to collect data for the second coffee crop in 2022 in nine states. coffee growers, the survey began in Espírito Santos last Monday and will continue in the rest of the states from this week to be completed by the end of April. According to the first survey data, this year’s coffee production of Brazil is estimated at 55.7 million bags, up 16.8% compared to 2001. The results of the second survey are expected to be published on this date. 19/05
Meanwhile, the reais rate continued to increase by 0.46% to 1 USD = 4.6910 reais, a more than 2-year high, continuing to support coffee futures prices. The reason for this currency to be strengthened is due to concerns about high global inflation and US stocks reversing to decline before the upcoming monetary tightening and USD – US base interest rate hike.
Coffee Exporters Council (commonly referred to as Cecafé) in Brazil reported that coffee exports in March totaled 3,622 million bags, down 6% year-on-year. Cecafé explained that the reason for the drop was because the logistics situation was still challenging for exporters.
English (giacaphe.com)
