Brazil’s weather report has more rain than average, causing speculators to push for liquidation, causing coffee prices to plunge right before the “super Wednesday” day…
At the end of the first trading session of the week, the price of Robusta coffee on the ICE Europe – London floor reversed to decline. Futures for spot delivery in July decreased by 23 USD, to 1,569 USD/ton and for September delivery also decreased by 23 USD, to 1,596 USD/ton, significant reductions. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued the downward trend. The July spot futures fell another 3.35 cents to 154.10 cents/lb and the September delivery futures fell another 3.40 cents to 156.20 cents/lb, significant declines. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, down to range from 33,400 to 34,100 VND/kg.
Export price of Robusta coffee grade 2.5% black broken, stood at 1,596 USD/ton, FOB – HCM, according to September futures price in London.
The reais increased by 0.97%, the exchange rate rose to 1 USD = 5,0710 Reais thanks to a strong increase in foreign capital flows and the domestic market was optimistic when the vaccination schedule “reasonable” than. Although the Fed insists that inflation is still under control, the market’s concerns before the date “Super Wednesday” The influx of capital into long-term US Treasuries pushed USDX up and dragged down the commodity markets in general, while speculating that the Monetary Policy Committee (Copom) of Brazil would raise the basic interest rate of the Reais. add 0.75% in the upcoming meeting.
Coffee prices on the two futures exchanges plunged after Somar weather reports said the weekend in Minas Gerais, Brazil’s largest Arabica coffee growing state, saw 160% more rainfall than the historical average. history. Speculators quickly accelerated the liquidation of the net buying volume “exceed” Before that, there was unfavorable information in the short term, causing Arabica coffee prices to drop to a nearly 3-week low and Robusta coffee prices to a 2-week low.
Market will show interest before date “Super Wednesday” due to regular meetings of Copam – Brazil, Fed – USA and ECB with policies that will affect the world economy in general.