July Arabica coffee traded on Wednesday closed down 1.55 cents and Robusta coffee closed down $43/ton at $3,978/ton.
Vietnam’s domestic coffee price has begun to decline by about 2,500 VND/kg and is in the range of 130,000 – 130,500 VND/kg.
Coffee prices on Wednesday gave up early gains, fell to new lows and traded steady at lower levels. A rebound in coffee supply in the ICE market weighed on prices after ICE-monitored Arabica inventories rose to a one-year high on Wednesday and Robusta coffee inventories rose to their highest level in a decade. Last 5 months.
Thus, Arabica Coffee prices fell by 3% during the week and hit a one-month low on Friday in the context of rebalancing commodity indexes and funds continuing to liquidate buying positions, according to the source. rain is forecast in Brazil next week as well as they see inventories increase.
As for Robusta coffee, traders say prices will have to increase further to attract farmers in leading producing country Vietnam to sell in regular quantities. However, technically, if the funds maintain the progress of liquidating long positions (ie having to sell to liquidate purchased lots), the London market in July is at risk of witnessing a price level of around 3650. $/ton.
Technically, the Arabica market seems to be more stable, because it is not affected by the hot surges like the recent London market, if the New York market in July can stay in the range of 211.7 – 212. .8 cents. Falling out of this framework, it is easy for mass liquidation to occur, making the market worse.
Kinh Vu (giacaphe.com)
