Futures market observers say there is speculation “Sell London, Buy New York” looking for short term profit…
Robusta chart of London 3/2022 session on 04/01/2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. The March spot term decreased by 21 USD to 2,349 USD/ton and the May delivery term decreased by 17 USD to 2,293 USD/ton, significant reductions. Trading volume below 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 increase. March spot futures rose 8.45 cents to 231.75 cents/lb and May delivery futures rose 8.50 cents to 231.80 cents/lb, very strong gains. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 41,800 to 42,300 VND/kg.
The price of exported Robusta coffee 2.5% black broken, stood at 2,043 USD/ton, FOB – HCM, with a deduction of about 240 – 250 USD/ton according to the May futures price in London.
The reais fell 0.47%, the exchange rate fell to 1 USD = 5.6890 Reais due to the anxiety of the global market regarding the Fed’s interest rate hike in the first half of this year due to inflation concerns. and the exponential growth of the Omicron variant in the US and Europe.
The price of Arabica coffee reversed to increase sharply after the previous strong drop, which was very surprising. According to observers, the New York futures market showed interest when the Brazilian Trade Authority reported that coffee exports in December fell by 17.18% year-on-year, of which Coffee beans only reached 3.461 million bags, down more than 18.4% compared to December 2020 exports (at 4.243 million bags).
On the contrary, the price of Robusta coffee continued to decline due to speculation and overbought, while a large volume of goods from Indonesia and Brazil followed the old mode of transport. “no conts” being on the way to Europe also caused speculation to balance and adjust the position currently held.
The new crop of Robusta coffee in Vietnam has been introduced to the domestic market. However, trade shows signs of dripping, still not showing as vibrant as previous years. According to local purchasing agents, coffee farmers are not interested in selling when the price is deducted at a low level. “too high”.
. ANhan Van (giacaphe.com)
