Concerns about weakening global demand have extended the downtrend in the coffee futures markets…
Robusta chart London July 2022 session on May 10, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the falling chain to the fourth session. Futures for spot delivery in July decreased by 11 USD, to 2,009 USD/ton and for September delivery decreased by 7 USD, to 2,013 USD/ton, slight decreases. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. July spot futures fell another 2.30 cents to 203.80 cents/lb and September futures fell another 2.25 cents to 203.80 cents/lb, significant declines. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased by another 100-200 VND, to range from 39,000 to 39,700 VND/kg.
USD continued to increase and the reais rate dropped to a 7-week low was the main reason why coffee futures prices continued to decline.
Concerns about the world economic recession and the war in Eastern Europe have not changed, while Shanghai’s expansion of the blockade makes the problem of global freight even more deadlocked.
It is estimated that China, Russia and Ukraine consume about 10 million bags of coffee per year.
The General Department of Vietnam Customs reported preliminary data that coffee exports in April reached 157,451 tons (equivalent to 2,624,183 bags, 60 kg bags), down 25.38% from the previous month. However, cumulative coffee exports in the first 4 months of this year totaled 739,046 tons (about 12.32 million bags), up 26.34% over the same period last year. The reason for the sharp increase in exports was because the first months of last year had to be closed due to the outbreak of the Covid-19 epidemic.
Many domestic traders said that they cannot sell coffee at this time because the price is too low, while for farmers, the price of fertilizer and materials is too high.
English (giacaphe.com)
