The spread of the Covid-19 epidemic has reduced coffee consumption, causing a global surplus to increase from 2.01 million bags to 2.30 million bags in coffee year 2020/2021, according to the latest ICO report. …
Robusta chart London September 2021 session on 06/07/2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor adjusted down. The September spot term decreased by 8 USD, to 1,679 USD/ton and the November delivery term decreased by 5 USD to 1,678 USD/ton, slight decreases. Trading volume on average. The island price structure is significantly shortened.
Meanwhile, the price of Arabica coffee on the ICE US floor – New York extended the falling chain to the fifth session. September spot futures fell another 4.95 cents to 148.10 cents/lb and December futures fell another 4.85 cents to 151.10 cents/lb, sharp declines. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, down to range from 35,100 to 35,700 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,679 USD/ton, FOB – HCM, according to September futures prices in London.
The Reais fell sharply by 2.39%, the rate fell to 1 USD = 5.2090 Reais, the lowest price since May 1 and the day with the worst exchange rate percentage since September 18 last year. . The incumbent president is likely to be impeached on charges of corruption and the USDX soars due to concerns about external risks causing investors to sell off stocks massively on the Brazilian stock exchange, which has weakened the Reais.
Although Arabica coffee is in full bloom, it is also an opportunity for Brazilians to promote the sale of new crop coffee when the Reais falls again because it will earn more local currency.
On the contrary, the London floor coffee price returned to an uptrend that lasted almost the whole session thanks to the supporting basic factors, but the pressure from the New York floor was too great so it had to reverse to decrease at the end of the session. (See the London price chart on July 6, 2021)
Observers say that global coffee consumption is temporarily reduced as the majority of consumer markets in the northern hemisphere enter the summer break and the Covid-19 epidemic still has many negative impacts.
The market is also beginning to receive preliminary information about the damaging frost in the states of Minas Gerais, Paraná and São Paulo, but brokers in Brazil say that nothing significant has yet to be seen.
English (giacaphe.com)
