Coffee prices will fluctuate strongly when the New York exchange enters the last two trading days of the July contract.
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to increase. The July spot term increased by $27, to $1,600/ton and the September delivery term increased by $29, to $1,629/ton, very significant increases. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. The July spot futures rose 2.15 cents to 153.35 cents/lb and the September futures rose 2.20 cents to 155.45 cents/lb, very significant gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, up to range from 34,000 to 34,700 VND/kg.
The price of exported 2.5% black Robusta coffee stood at $1,629 per ton, FOB – HCM, according to September futures prices in London.
The Reais fell 0.35%, the exchange rate rose to 1 USD = 5,0600 Reais after a strong increase earlier on speculation that Copom – Brazil will raise the basic interest rate of the Reais higher than expected at the meeting. This time, it is not affected by the Fed-US meeting taking place at the same time.
Coffee futures prices rebounded when the market had new information to support. Besides Cecafé – Brazil reported May exports of only 2.34 million bags, down 20.50% over the same period, showing that the supply is no longer abundant, is the May inventory report of the Coffee Association. County (GCA) – North America increased for the second month in a row but fell 14.70% year-on-year.
The reais was stronger, once up at 4.9xxx/USD and the inventory of the old crop was not much, causing Brazilians to reduce selling in the short term. While the Fed insists that it has not changed the basic USD interest rate, at least until the beginning of 2023, it can only reduce stimulus to prevent excessive inflation.
It is expected that the coffee market will fluctuate very significantly in the last 2 sessions of the week before the expiration date of the July options contract on the New York Stock Exchange.