Supply from producing countries is tight because of the covid-19 epidemic and difficult shipping, so speculation on stockpiling at the floor has pushed up prices for short-term profit, even though Brazil has just harvested a new crop this year…
Robusta chart London T11/2021 session on August 24, 2021
Ending the session, the price of Robusta coffee on ICE Europe – London increased for the third consecutive session. The September spot term increased by $71, to $1,964/ton and the November delivery term increased by $59, to $1,971/ton, very strong gains. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures increased by 3.90 cents to 185.75 cents/lb and March 2022 futures added 3.8 cents to 188.40 cents/lb, very significant gains. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces increased by 700-800 VND, up to range from 38,600 to 39,500 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, standing at 1,850 USD/ton, FOB – HCM, with a deduction of 70 – 80 USD/ton according to the January 2022 futures price in London.
The reais surged 2.23%, the exchange rate rose to 1 USD = 5.2616 Reais after the Brazilian government’s commitment not to exceed the ceiling in budget spending, while the US economic data report was still up. good growth despite the spread of the new strain of covid-19, as well as the general optimism of the global market in the face of the recovery of many major economies.
The price of Robusta coffee in London skyrocketed due to concerns about tight supply from producing countries and an opportunity for speculation at the floor to push up spot prices. While the price of Arabica coffee is also supported by the weather report in the Brazilian coffee belt continues to be dry. But the market was also cautious with the low trading volume, because as soon as the news of Brazil rained, the New York price would tumble.
English (giacaphe.com)
