Brazilians still strongly sell coffee when the Reais exchange rate is at a favorable level, although the possibility of a decrease in crop production in 2022 is not in dispute…
London Robusta chart January 1, 2022 session on December 9, 2021
At the end of the session, the price of Robusta coffee on ICE Europe – London tended to be mixed. The January spot futures fell by $8 to $2,401 per ton, while futures both increased. Specifically, the term for delivery in March increased by 11 USD, to 2,306 USD/ton and the term for delivery in May also increased by 11 USD, to 2,270 USD/ton, slight increases/decreases. Trading volume above average. The island price structure closes the gap.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. March spot futures fell 4 cents to 240.20 cents/lb and May delivery also fell 4 cents to 239.65 cents/lb, sharp declines. Trading volume remain above average. The island price structure stabilizes the gap.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 42,500 to 42,800 VND/kg.
Price of exported Robusta coffee grade 2.5% black broken, standing at 2,056 USD/ton, FOB – HCM, with a deduction of about 230 – 250 USD/ton according to the March futures price in London.
The reais fell by 0.73%, the exchange rate fell to 1 USD = 5,5640 Reais after Copom – Brazil raised the basic interest rate of the Reais by 1.5%, stimulating Brazilians to sell agricultural products strongly. export production. Meanwhile, the news that China’s Evergrande real estate group was officially declared insolvent made most of the world’s stocks red and the market feared a sell-off, but that didn’t happen.
Coffee prices back mixed, with New York falling due to “speculative bull” short-term profit after overbought and fundamentals remain supportive, while London maintains bullish momentum and mostly corrects only the gap of island price structure. However, observers note, the market needs to pay more attention when the expiration of the January 2022 options contract on the London floor is near.
Information about the first sizable shipment from Vietnam to be exported at the end of November, after many months of implementing social distancing because of the covid-19 pandemic that broke out in the southern provinces, has not yet been officially reported due to lack of information. in transit.
The market is also waiting for more before the announcement that the US will apply an entry restriction measure from 5 countries in Europe due to concerns about the Omicron variant, even though WHO previously announced this new variant. “not really disturbing”.
English (giacaphe.com)
