The expectation of the 1.9 trillion USD financing package continues to make the investment flows shift, making it difficult for most emerging markets, promoting the fear that financial markets will become more unstable …
Robusta London chart May / 2021 session on March 2, 2021
At the end of the session, Robusta coffee prices on ICE Europe – London dropped for the third consecutive session. May spot futures dropped another 15 USD, down to 1,450 USD / ton and July futures dropped another 13 USD, to 1,470 USD / ton, the significant reductions. Trading volume above average.
Similarly, Arabica coffee prices on the ICE US – New York floor also fell for the third consecutive session. May futures fell 1.95 cents, down 133.85 cents / lb and July futures also dropped 1.95 cents, to 135.80 cents / lb, the decline is very significant. Trading volume quite high above mGermany medium.
The price of green coffee in the Central Highlands provinces decreased by 200-300 VND, down to fluctuating in the frame of 32,700 – 33,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,530 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in terms of July futures in London.
Reais copper plunged 1.19%, to $ 1 = 5.7670 Reais, low since November 3, 2020, in response to federal tax policies to defuse the strike of the truck driver. Bank of Brazil (BC) has just put 2.095 billion USD to auction to support liquidity when Reais exchange rate surpasses 5.73. Meanwhile, the US Treasury’s long-term bonds continue to raise interest rates, which is a concern that foreign investors continue to withdraw capital, further weakening the Reais and emerging currencies, becoming a drag for general commodity markets.
Two-floor coffee prices continued the decline as speculation continued to liquidate the previously overbought position, combined with the weak Reais copper stimulated Brazilians to increase export sales in the context of old crop supplies. plentiful, despite the forecast for a strong drop in output in the upcoming new season.
According to Conab, the agricultural supply and forecasting agency of the Brazilian Ministry of Agriculture, forecast Arabica coffee output in the 2021 crop will decrease by 35.7% compared to the previous crop, to the lowest level in 12 years. 31.35 million bags, due to the cycle “Every two years” and unfavorable weather.
According to technical analysis, the price of New York coffee floor is likely to return to reach 120 cts / lb.
English (giacaphe.com)
