What caused the price of the futures contract from 2022 to 2024 on the Arabica New York exchange? doesn’t seem to make a difference…
London Robusta chart January 1, 2022 session on November 19, 2021
At the end of the last session of the week, Robusta coffee prices on ICE Europe – London reversed to recover. Futures for delivery in January increased by 33 USD, to 2,245 USD/ton and term for delivery in March increased by 30 USD, to 2,197 USD/ton, strong increases. Trading volume remain average. The island price structure stabilizes the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures rose 4.35 cents to 233.30 cents/lb and March futures rose 4.25 cents to 233.40 cents/lb, strong gains. Trading volume quite above average. .
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, fluctuated in the range of 41,400 – 41,900 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,977 USD/ton, FOB – HCM, with a deduction of about 200 – 220 USD/ton according to the March futures price in London.
The Reais fell 0.73%, the rate fell to 1 USD = 5.6100 Reais, setting a new low, as the Brazilian stock market rallied on the option expiration date. But fears of a global recession and the coronavirus outbreak in Europe sent USDX up and put most emerging currencies at a disadvantage.
However, it is also because of this that the delivery of goods under futures contracts has arisen problems that are not easily resolved. Producers believe that they have no shortage of coffee to deliver, while traders are concerned that they cannot guarantee the supply of orders according to the industry’s production plan.
World coffee prices returned to the upside as soon as New York expired the December futures contract and delayed deliveries from South American producers stimulated speculation again to increase buying. Meanwhile, speculators also contributed to establishing an inverse price structure on both exchanges to partially offset logistics costs due to no signs of improvement.
Cecafé – Brazil estimates that about 3.7 million bags of coffee have not been delivered so far this year because of shipping delays and logistical problems.
The report of the Foreign Agricultural Service (FAS), part of the US Department of Agriculture (USDA), shows that the global coffee supply in the new coffee crop 2021/2022 will not be as expected. In which, Colonbia production decreased from 14.1 million bags to 13.8 million bags. Vietnam’s export estimate fell from 28.8 million bags to 25.8 million bags…
ANhan Van (giacaphe.com)
