Coffee prices weaken again as Brazilians aggressively sell coffee out…
At the end of the last session of the week, the price of Robusta coffee on ICE Europe – London reversed to decrease. Futures for delivery in January decreased by 25 USD to 2,376 USD/ton and term for delivery in March decreased by 15 USD to 2,291 USD/ton, significant reductions. Trading volume on average. The island price structure continues to close the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued to decline. The March spot futures fell another 7.60 cents to 232.60 cents/lb and the May delivery futures fell another 7.30 cents to 232.35 cents/lb, very strong declines. Trading volume very above average. The island price structure closes the gap.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 VND, ranging from 42,200 to 42,600 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 2,041 USD/ton, FOB – HCM, with a deduction of about 230 – 250 USD/ton according to the March futures price in London.
The reais fell 0.69%, the exchange rate fell to 1 USD = 5.6140 Reais showing the optimism of the foreign exchange market after the release of the Consumer Price Index (CPI) in the US and a sign of the USD interest rate hike is approaching, causing speculation to shift capital flows back to securities.
Despite reassuring claims that the Omicron variant is not as dangerous as many fear, more and more countries are stepping up social distancing measures as this variant is confirmed to be much more contagious than Delta. many times and need to be more cautious.
The price of coffee on the two floors dropped with concerns about weakening demand because of the re-emergence of the covid-19 epidemic, which led to a prolonged liquidation, while the reais exchange rate is currently at a favorable level for Brazilians. strong sale. Meanwhile, the expiration of the January 2022 futures contract in London also caused investors to adjust the balance of their holding positions.
The Vietnamese market is at the peak of harvest, so new crop coffees are brought to the market in a small volume and will increase significantly at the beginning of the new year 2022.
ANhan Van (giacaphe.com)