Dry weather in Brazil remains a concern in the short term but the rally on both coffee futures exchanges seems to be aimed at offsetting ocean freight rates as the main reason…
Robusta chart London T11/2021 session on August 26, 2021
Ending the session, the price of Robusta coffee on ICE Europe – London increased for the fifth consecutive session. The November spot term increased by 21 USD, to 1,994 USD/ton and the term for delivery in January 2022 increased by 16 USD, to 1,957 USD/ton, very significant increases. Trading volume very below average
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures added 1.65 cents to 188 cents/lb and March 2022 futures added 1.60 cents to 190.65 cents/lb, significant gains. Trading volume quite below average.
The price of green coffee beans in the Central Highlands provinces increased by 200-300 dong, up to range from 38,900 to 39,700 dong/kg.
Price of exported Robusta coffee grade 2.5% black broken, standing at 1,857 USD/ton, FOB – HCM, with a deduction of 90-100 USD/ton according to the January 2022 futures price in London.
The reais fell 0.86%, the exchange rate fell to 1 USD = 5,2560 Reais on speculation that the Fed would soon cut economic stimulus, while domestic investors were worried that rising inflation would create risks. New risks and uncertainties in the political arena have not shown any signs of improvement.
The price of coffee on both exchanges continued to increase with low trading volume, showing that most investors are still outside the market. According to observers, it seems that the coffee futures markets want to establish a new price level, spending less to compensate for the already high sea freight rates.
The weather forecast this weekend will have scattered rain across the Brazilian coffee belt, helping to relieve some stress on crops but still not improving the current drought situation.
English (giacaphe.com)
