The report that inventories at the two exchanges fell in a row, causing short-term speculation to push up the price of coffee futures…
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. The November spot term increased by $45, to $2,144/ton, the January delivery term increased by $47, to $2,151/ton and the March delivery term increased by $29, to $2,097/ton. very significant increases. Trading volume quite above average. The inverse price structure widens the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York extended the rising chain to the fifth session. December spot futures added 8.90 cents to 213.15 cents/lb and March 2022 futures added 8.85 cents to 216.05 cents/lb, very strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 600 – 700 VND, to ranged in the range of 40,800 – 41,300 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,991 USD/ton, FOB – HCM, with a deduction at 150 – 160 USD/ton according to the January 2022 futures price in London.
The Brazilian Coffee market is closed for the holiday of Our Lady of Aparecida, Patron Saint of the world’s largest Catholic country, following Columbus Day, causing sales to slow down as expected. Although there has been information about heavy rain on the coffee belt in southern Brazil, good support for Arabica coffee trees to flower new crops, while consecutive storms in Vietnam bring a lot of rain to the Central Highlands coffee region. , support for Robusta coffee plants to increase yield and quality of beans before the new harvest.
The sharp increase in coffee prices not only attracted delivery when the “certified” inventory reports at the two exchanges decreased in a row and to partially compensate for the still high shipping charges that made traders coffee losses persist.
The National Coffee Federation FNC – Colombia has also denied rumors of a delay in delivery of about 1 million bags because coffee growers think they have to suffer undue losses when they have signed a contract to sell at the time of futures prices in the country. level is too low, but it may also be due to a decrease in Mitaca production. According to FNC, it is mainly due to the protests blocking the highway leading to export ports and especially due to the delay of shipping lines because of the covid-19 pandemic, while FNC asserts that this year is a good season with output more than 13 million bags.
According to observers, the coffee futures markets are the playground of financial speculators, due to their acumen and higher liquidity than the supply and demand factors of the commodity. The main impact at the moment is from the concern that rising global inflation has pushed USDX up continuously and increases the possibility that the US Federal Reserve (FED) will raise the basic interest rate on USD in the last policy meeting. year, next November. While the news that OPEC + increased crude oil production by 400,000 barrels per day was not confirmed, the global energy crisis this winter this year deepened.