Speculators continued to liquidate and adjust their net positions before the end of May futures on both markets…
Robusta chart London T5/2022 session on April 12, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to decrease. The spot term for May delivery decreased by 10 USD to 2,098 USD/ton and the term for delivery in July decreased by 6 USD to 2,111 USD/ton, a slight decrease. Trading volume increase very high above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. The May spot futures fell 3 cents, to 233.60 cents/lb and the July delivery futures also fell 3 cents to 233.55 cents/lb, significant declines. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, down to range from 40,300 to 40,700 VND/kg.
Coffee prices reverse decline as the war in Eastern Europe continues to intensify, potentially more “intense” in the coming days. US stocks continue to fall, USDX has crossed the 100 threshold, the reais weakens again due to economic recession fears that have spurred Brazilians to be strong. “selling out”an activity that is often negative for coffee futures markets.
News from Reutersit is expected that Brazil’s coffee consumption in coffee year 2021/2022 will decline for the first time in more than 10 years as the economic downturn, high inflation rate and skyrocketing prices have negatively impacted demand. consumer demand, according to a study by HedgePoint Global Markets.
The Indonesian government’s Trade report shows that Robusta coffee exports in March totaled 126,740 bags, down 119,991 bags, or 48.63% lower than the same period last year. However, the export results of the whole coffee year 2021/2022 totaled 4,568,248 bags, an increase of 1,327,903 bags, or an increase of 40.98% compared to the previous crop year 2020/2021. (Indonesian coffee year is calculated from April of the previous year to March of the following year).
According to observers, the price of coffee on both futures exchanges dropped again mainly due to technical selling. Speculators continued to liquidate and adjust their net positions held before the end of the May futures contract with very high trading volume.
English (giacaphe.com)
