Speculators made technical adjustments and took profits at the end of the year, causing the coffee futures markets to decline…
Robusta chart London March 2022 session on December 31, 2021
At the end of the year-end session, the price of Robusta coffee on ICE Europe – London dropped. Futures for delivery in March decreased by 3 USD, to 2,370 USD/ton and term for delivery in May decreased by 2 USD, to 2,310 USD/ton, slight reductions. Trading volume very below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. The March spot futures fell another 2.75 cents to 226.10 cents/lb and the May delivery futures fell another 2.80 cents to 226 cents/lb, very significant reductions. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 dong, to range from 42,200 to 42,700 dong/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 2,060 USD/ton, FOB – HCM, with a deduction of about 240 – 250 USD/ton according to the May futures price in London.
The reais increased by 1.08%, the exchange rate rose to 1 USD = 5.6390 Reais as foreign investors continued to heavily pour capital into the Brazilian stock market, while the Omicron variant caused the number of pediatric cases to increase. Hospitalizations in North America increase “never happend”, although there have been some studies that have evaluated it less severely.
Coffee futures prices fluctuated mainly in the negative zone, which is believed to be the profit taking and correction of speculative positions at the end of the year in New York with a very significant volume, while most speculation in London has left. from the exchange because this market extends the 2022 New Year holiday until the end of Monday, January 3.
Robusta coffee prices in London are still supported by Vietnam’s export report.
According to the December export report of the General Statistics Office of Vietnam, it is estimated that coffee exports in the month only reached 130,000 tons (about 2.17 million bags), down 6.5% over the same period last year. The reason is said to be due to the rising freight rates so that traders are not interested in bringing coffee to the London floor to participate in the auction.
Although the new crop is ready, Vietnamese farmers do not want to sell right now. According to them, the futures price is acceptable, but traders charge too high a deduction, sometimes up to 450-480 USD/ton and think that in order to offset logistics costs, they feel they need to wait more. with the hope that this situation will soon improve.
ANhan Van (giacaphe.com)
