If the daytime temperature increases, the consequences after the frost will be more severe…
Robusta chart London September 2021 session on 20/07/2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange rebounded. The September spot term increased by $29 to $1,761/ton and the November delivery term increased by $30 to $1,763/ton, strong gains. Trading volume above average. The island price structure maintains the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York reversed and skyrocketed. September spot futures rose 10.40 cents to 166.80 cents/lb and December futures rose 10.35 cents to 169.75 cents/lb, extremely strong gains. Trading volume is at “terrible”, rare.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 dong, ranging from 36,100 to 36,800 dong/kg.
Price of exported Robusta coffee grade 2.5% black broken, stood at 1,723 USD/ton, FOB – HCM, with a deduction of 30 – 40 USD/ton according to the November futures price in London.
The reais increased slightly by 0.38%, the exchange rate rose to 1 USD = 5,2300 reais due to correction after yesterday’s sharp drop and the increase in foreign capital inflows. While the global market continues to worry that the new variant of covid-19 will slow down the recovery of the world economy in addition to rapidly increasing inflation.
Finally, the fear of frost in Brazil’s major coffee states has surfaced. According to initial reports, the temperature in some planting areas dropped below 0 degrees Celsius in the early morning of July 20. This has pushed the New York floor price up extremely sharply, rarely seen. London prices are inevitably followed, although there is still caution given the low volume of trade.
The market continues to monitor, if daytime temperatures increase, the consequences after the night of frost will be more severe. While this weekend is only a full moon and there is no guarantee that frost will not return to the main coffee growing states of Brazil. That is also the top concern of investors on both coffee derivatives exchanges at the moment.
Vietnam and many Southeast Asian countries are increasing social distancing measures in an effort to contain the new variant of covid-19 that is breaking out in the region. This factor also contributes to significant volatility in coffee futures prices.
English (giacaphe.com)
