The expectation that New York will have significant fluctuations when completing the options contract, while Brazil and Indonesia are about to launch the new crop of Robusta also put a lot of pressure on London…
Robusta chart London T5/2022 session on April 20, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange increased. Spot futures in May increased by 1 USD, to 2,075 USD/ton and term for July delivery increased by 4 USD, to 2,092 USD/ton, slight increases. Trading volume remain above average.
In contrast, the price of Arabica coffee on the ICE US floor – New York dropped for the sixth consecutive session. The May spot futures fell another 2.50 cents to 218.80 cents/lb and the July delivery fell another 2.25 cents to 219.45 cents/lb, significant reductions. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces increased slightly by 100 VND, to range from 40,000 to 40,500 VND/kg.
The pressure of option expiration and the first delivery notice date (FND) of the May term (April 21) forced New York speculators to liquidate, balance their net positions combined with the inventory report. The increase in inventories in March 2022 of the Coffee Beans Association (GCA) in the US made the price of Arabica coffee continue to fall deeply, which is inevitable. The market expects speculators to soon return to buy because the New York floor price has fallen to a lower level of more than 3 weeks.
However, some observers believe that the war in Eastern Europe shows no sign of ending and the USDX remains at a high level, while the pressure of tightening economic stimulus measures and raising the base interest rate increases. currency versions of major central banks coming soon because of excessive inflation, which may cause the decline in the New York floor to not end.
Although the London floor tried to be positive at the beginning of the session, the price of Robusta coffee was still pulled down from the New York floor. However, the London floor still increased slightly when closing the session is a very interesting thing for the market, in the context of the significant pressure of the end date of the May futures contract combined with the new Brazilian Robusta crop this year. and Indonesia is also about to release.
English (giacaphe.com)
