The London futures market continued to weaken as the outbreak of the Omicron variant led European countries to re-establish more drastic social distancing measures…
Robusta chart London 3/2022 session on 05/01/2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor decreased for the third consecutive session. The March spot term decreased by 28 USD to 2,321 USD/ton and the May delivery term decreased by 23 USD to 2,270 USD/ton, the reductions are quite strong. Trading volume remain below average. The island price structure closes the gap.
In contrast, the price of Arabica coffee on the ICE US floor – New York tends to be mixed. Near term delivery terms remain unchanged. Specifically, the March delivery term was still at 231.75 cents/lb and the May delivery term was still at 231.80 cents/lb, while the long term futures both increased slightly. Trading volume on average. The island price structure also closes the gap.
The price of green coffee beans in the Central Highlands provinces decreased by 400-500 VND, to range from 41,400 to 41,800 VND/kg.
The price of exported Robusta coffee grade 2.5% black broken, stood at 2,020 USD/ton, FOB – HCM, with a deduction of about 240 – 250 USD/ton according to the May futures price in London.
The reais fell 0.36%, the exchange rate fell to 1 USD = 5,7100 Reais as risk aversion increased after the release of Fed meeting minutes showing signs of cutting stimulus measures and raising interest rates. USD basis may be faster than the previous market’s prediction.
Robusta coffee prices continue to weaken due to concerns that European countries will strengthen social distancing measures because the Omicron variant spreads quickly, causing coffee shops to close and demand for consumption.
On the contrary, the price of Arabica coffee tends to decrease, which is often seen right after the previous strong increase. Although there was a slight recovery at the end of the session, the market was still worried because Brazil’s exports dropped in December.
Although the producing countries of high-quality wet-processed Arabica coffee in Central America reported a strong increase in December exports compared to the same period last year. But this did not surprise the market, because the export volume of December last year was too low because of the consequences of two consecutive storms Eta and Iota that hit this area.
ANhan Van (giacaphe.com)
