Coffee prices continue to weaken after monthly export reports of major producing countries, showing that short-term supplies are still abundant …
Robusta London T5 / 2021 chart session on March 5, 2021
Ending the session, Robusta coffee prices on the ICE Europe – London floor extended the chain to the fifth session. May spot futures dropped another 20 USD, down to 1,406 USD / ton and July futures dropped another 19 USD, to 1,427 USD / ton, the decline is very significant. Trading volume above average.
Similarly, Arabica coffee prices on the ICE US – New York floor also had the fifth consecutive session. May spot futures dropped another 0.65 cents, down 132.15 cents / lb and July futures dropped another 0.7 cents, to 134.05 cents / lb, the slight decrease. Trading volume maintained on mGermany medium.
The price of coffee beans in the Central Highlands provinces decreased by 200-300 VND, down to fluctuate in the frame of 31,900 – 32,500 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,487 USD / ton, FOB – HCM, with the plus difference at 50-60 USD / ton in term of July in London.
Reais copper increased slightly by 0.03%, up at 1 USD = 5,6600 Reais, despite the quite strong volatility in the day, especially the concern that the Government of Brazil had exceeded the ceiling on public spending. Meanwhile, the chairman of the US Federal Reserve (Fed) also expressed concern as inflation increased rapidly with long-term US Treasury bonds rising. “USD buying wave” on a global scale, continues to make it difficult for emerging currencies to discourage purchasing power in general.
Coffee prices on the two floors continued to decline deeply as the Reais copper rate remained fluctuating at a prolonged low level, while the forecast for a global coffee market was oversupply. In particular, Robusta coffee prices have an additional disadvantage when the Irish Sea trade continues to be the most controversial in Britain’s post-Brexit relationship with the EU.
In its Trade Report January 2021, the International Coffee Organization (ICO) maintained its forecast of global coffee supply and demand for the current coffee year 2020/2021, with an estimate of global supply. is 171.89 million bags and estimated global consumption is approximately 166.62 million bags. Therefore, the global coffee supply in this season will be in surplus of about 5.26 million bags.
The market continued to focus attention on the $ 1.9 trillion funding package, forcing President Biden to amend some terms if they wanted to be approved by the US Senate soon.
English (giacaphe.com)
