The cold weather covering southern Brazil last night contributed to shaking the derivatives coffee markets, especially the price of Robusta coffee spiked again…
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange rebounded. The September spot term increased by $30 to $1,705/ton and the November delivery term increased by $22 to $1,712/ton, significant increases. Trading volume above average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York continued the downtrend. September spot futures fell another 0.45 cents, to 159.75 cents/lb, and December futures also fell 0.45 cents to 162.65 cents/lb, slight declines. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 dong, up to range from 35,500 to 36,300 dong/kg.
The price of exported 2.5% black Robusta coffee stood at 1,705 USD/ton, FOB – HCM, according to September futures prices in London.
The reais fell 0.60%, the exchange rate fell to 1 USD = 4,9720 Reais with political conflicts arising, especially the suspicion that the Brazilian government was corrupt in buying vaccines against covid-19 . Meanwhile, the US jobs report higher than expected also contributed to regaining USD strength and pushed emerging currencies into the negative.
Besides the published information, the coffee markets were mixed, also due to the impact of the cold air mass covering the south of Brazil last night, which caused spikes on both futures exchanges. It can be seen that the sudden fluctuation in New York was not too large, while London plunged at the beginning of the session following the previous decline. It was only when the temperature in Paraná dropped to minus degrees Celsius and the Midwest in São Paolo hit the 0-degree threshold that caused prices to skyrocket. (see price chart above).
The state of Paraná produces about 900,000 bags and the Midwest accounts for about 26% of Brazil’s Conilon Robusta production.
According to analysts, yesterday was the closing session for the first six months of the year, so speculation on derivatives markets simultaneously adjusted and balanced positions, causing many commodity exchanges to fluctuate strongly, to a rare level. see. Therefore, the trading volume on both derivative coffee exchanges is still not high.
English (giacaphe.com)