The expiration of September options continues to support the price of coffee on two floors in the short term…
Robusta chart London September 2021 session on August 16, 2021
At the end of the first session of the week, the price of Robusta coffee on ICE Europe – London reversed to increase. The September spot futures increased by 20 USD to 1,848 USD/ton and the November delivery term increased by 17 USD to 1,853 USD/ton, significant increases. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also reversed to increase. September spot futures rose 0.45 cents to 183.20 cents/lb and December futures rose 0.50 cents to 186.25 cents/lb, slight gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 300-400 VND, to range from 37,200 to 37,900 VND/kg.
Export price of Robusta coffee grade 2.5% black broken, stood at 1,773 USD/ton, FOB – HCM, with a deduction of 70 – 80 USD/ton according to the November futures price in London.
The Reais fell 0.66%, the exchange rate fell to 1 USD = 5.2810 Reais due to the risk of not meeting the fiscal target due to internal turmoil and the economy of the leading partner growing more than expected. .
Meanwhile, US stocks rebounded from previous losses to end the week on a high, USDX’s strong rise in a basket of currencies lifted prices of many commodities, while crude oil prices rose. weakened by the news that the Taliban had entered the capital Kabul…
Two-floor coffee prices jumped as September options pressure in New York eased along with reports of dry weather in southern Brazil. According to the Somar weather news agency, last week there was no rain in the coffee belt while the humidity was 10% below the minimum threshold. However, in the middle of the session, there was information that scattered showers with a rainfall of no more than 0.5mm helped ease the market’s tension somewhat. Note, in Brazil, spring rains will appear, starting from September, which is essential for coffee trees to flower a new crop, and rainfall is abundant only in the summer rainy season.
The Uganda Coffee Development Authority (UCDA), Africa’s largest Robusta coffee producer, reported coffee exports in July totaling 700,035 bags, up 28.77% year-on-year. , in which exports of Robusta increased by 41.27%, to 660,458 bags, but exports of Arabica coffee decreased by 47.99%, to 39,577 bags. According to UCDA, cumulative coffee exports in the first 10 months of the current crop year 2020/2021 totaled 5,209,085 bags, an increase of 874,379 bags, or an increase of 20.17% over the same period in the previous crop year.
According to observers, fears of a decline in global coffee consumption due to the spread of the new strain of COVID-19 have prompted many countries to re-establish stronger social distancing measures. While the challenges of shipping have reduced inventories in many main consuming markets, it is helping to support coffee prices in the short term.
English (giacaphe.com)
