The G7 conference fixed the minimum tax rate of 15% for multinational companies and the withdrawal of capital from the digital currency exchange contributed to the price of coffee futures having a volatile session…
Robusta chart London July 2021 session on 08/06/2021
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to decrease. Futures for spot delivery in July decreased by 29 USD to 1,596 USD/ton and for September delivery decreased by 30 USD to 1,621 USD/ton, significant reductions. Trading volume remained very high above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued to decline. The July spot futures fell another 2.45 cents to 157.70 cents/lb and the September delivery futures fell another 2.35 cents to 159.85 cents/lb, the declines were also quite strong. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 500-600 VND, to range from 33,700 to 34,500 VND/kg.
The price of exported 2.5% black Robusta coffee stood at $1,621/ton, FOB – HCM, according to September futures prices in London.
The reais fell slightly by 0.05 %, the rate fell to 1 USD = 5,0400 reais after investors’ caution as Brazil’s economic growth results were slightly lower than expected and some vaccines Covid-19 did not work as expected. Locally adjusted USDX also supports inflation volatility in many countries.
World coffee prices weakened again when Brazil had significant rain, although the rainfall was still lower than the average for many years, it also contributed to alleviating the concern that drought caused a decline in grain quality.
Observers said that besides the pullback of digital currencies, causing speculative capital flows to move strongly through derivatives exchanges, there was liquidation and profit-taking of short-term speculation after the Conference. G7 pegs a minimum tax rate of 15% for multinational companies, causing the coffee futures market to have had a volatile session and most electronic price lists in the red.
The short-term global coffee supply in the medium term is expected, but the pressure of this year’s new crop of Brazil remains intact, with little spending lasting until the end of the third quarter of this year. Traders in the coffee trading center of São Paulo expect Arabica prices to close in 2021 at 160 cents/lb.
English (giacaphe.com)
