Most of the speculators are still outside the market, so the price of coffee only recovered slightly, not meeting expectations…
Robusta chart London July 2021 session on May 25, 2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor recovered again. Futures for spot delivery in July increased by 10 USD, to 1,488 USD/ton and for September delivery increased by 8 USD, to 1,512 USD/ton, a slight increase. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same trend of recovery. July spot futures rose 1.50 cents to 150.5 cents/lb and September futures rose 1.45 cents to 152.45 cents/lb, significant gains. Trading volume in mbreast medium.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 32,700 to 33,200 VND/kg.
Price of exported Robusta coffee grade 2.5% black broken, stood at 1,532 USD/ton, FOB – HCM, with a plus difference at 20 USD/ton according to September futures prices in London.
The Reais fell slightly by 0.22%, the rate fell to 1 USD = 5.3370 Reais due to a technical correction and the weakness of emerging currencies against the USD, as global inflation concerns grew. “only temporary” according to the assessment of the US Central Bank (Fed).
Coffee futures prices recovered on both exchanges but are still at a disadvantage as speculative capital flows back to digital currency exchanges and investors are still cautious and remain outside.
Although Conab Brasil has just released a revised forecast for Brazilian coffee production this year down 23% to only 48.8 million bags, a 4-year low, it is not surprising to the market, given Conab often under-reports much more than reality.
Continued easing of social distancing in major consumer markets in Europe and the US is expected to support price increases, while export volume from the top two manufacturers slows down somewhat. Brazil’s focus on Arabica harvest has just begun. Vietnam still shows signs of price resistance when Robusta coffee prices in London are still fluctuating at low levels.
English (giacaphe.com)
