Even though today the September options contract expires on the New York Stock Exchange, the Arabica coffee speculators have soon pushed the price in a row in the past few sessions…
Robusta chart London September 2021 session on 12/08/2021
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to decrease. The September spot term decreased by 10 USD, to 1,849 USD/ton and the November delivery term also decreased by 10 USD, to 1,854 USD/ton, slight declines. Trading volume below average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York increased for the fourth consecutive session. September spot futures added 2.70 cents to 186.55 cents/lb and December futures added 2.60 cents to 189.60 cents/lb, significant gains. Trading volume at the “terrible” level, rarely seen.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 37,200 to 37,900 VND/kg.
Price of exported Robusta coffee grade 2.5% black broken, stood at 1,774 USD/ton, FOB – HCM, with a deduction of 70 – 80 USD/ton according to the November futures price in London.
The Reais fell 0.68%, the exchange rate fell to 1 USD = 5.2560 Reais as most investors took profits before the income tax reform bill was approved by the Brazilian parliament. While USDX is still growing cautiously steady when the US economic data is still showing positive, especially before the Fed policy meeting later this month.
Fear of Brazil’s coffee output of the 2022 crop continues to spur speculation on the New York Stock Exchange to increase purchases in volume “terrible”. There was also a contribution as the International Coffee Organization’s (ICO) July Markets report estimated a reduction in the global surplus in the current crop year 2020/2021 to 2.02 million bags compared with the previous estimate. The previous calculation was 2.26 million bags.
Meanwhile, the London market reversed to fall unexpectedly because Conilon Robusta coffee was harvested by Brazilian farmers before the frost hit, if there is no significant damage. While Vietnam, the leading Robusta producer, reported an increase of 4.49% month-on-month in July coffee exports and an 11.15% year-on-year increase in the price of Robusta coffee. leveled off, even though accumulated exports in the first 7 months of 2021 decreased by 8.06% over the same period in 2020. (Re-read yesterday’s newsletter 12/08/2021).
. English (giacaphe.com)
