Financial speculation continues to push up the inverse price structure, while coffee farmers get nothing…
London Robusta chart January 1, 2022 session on December 6, 2021
Ending the first session of the week, the price of Robusta coffee on ICE Europe – London increased for the fifth consecutive session. Futures for delivery in January increased by 34 USD, to 2,420 USD/ton and term for delivery in March increased by 17 USD, to 2,315 USD/ton, very significant increases. Trading volume above average. The island price structure continues to widen the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York increased for the fourth consecutive session. The March spot futures added 6.50 cents to 249.85 cents/lb and the May delivery futures added 6.40 cents to 248.80 cents/lb, very strong gains. Trading volume remain above average. The island price structure also widens the gap.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, to ranged in the range of 42,700 – 43,100 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, standing at 2,045 USD/ton, FOB – HCM, with a deduction of about 250 – 270 USD/ton according to the March futures price in London.
Reais fell 0.28%, rate down to 1 USD = 5.6930 Reais on forex market caution ahead of Omicron variant and expectations for US inflation data to be released this week, while the market raised bets on the monetary policy meeting of Copom – Brazil and Fomc – US will raise the basic interest rate next week.
The price of coffee on the two futures exchanges continued the uptrend and the island price structure was widened, which is not surprising. However, according to observers, the price of coffee futures increased, but producers still did not benefit because the investment in fertilizers and labor wages also increased excessively.
Cooxupé, the largest coffee cooperative in Brazil and the world, is expected to export only 4.8 million bags of coffee in 2021, down 26.15% from the previous year due to logistics problems.
According to weather news agency Somar, rainfall over the past week in Minas Gerais, Brazil’s largest Arabica coffee growing state, has averaged only 39% of its historical average, threatening to damage the newly formed cotton buds, will leading to a decline in coffee yield in 2022 and supporting price increases.
English (giacaphe.com)
