Trade data shows that the pressure of first announcement day (FND) is no longer too heavy on both coffee futures markets…
At the end of the first trading session of the week, Robusta coffee prices on ICE Europe – London floor recovered for the third consecutive session. The March delivery term increased by 49 USD, to 3,280 USD/ton and the May delivery term increased by 31 USD, to 3,172 USD/ton, very significant increases. Trading volume is below average.
Meanwhile, Arabica coffee prices on the ICE US – New York floor did not change. Because this market is closed for President’s Day.
The price of green coffee in the Central Highlands provinces increased by 1,000 – 1,100 VND, fluctuating in the range of 81,300 – 82,000 VND/kg.
Robusta coffee prices continued to increase when traded alone as the market continued to be supported by supply concerns from major producing countries in Asia, with traders continuing to push up price differentials (Dif. ) you have to go high to buy the goods. ICE – Europe’s inventory report data yesterday, Monday February 19, continued to decline to a record low of 19,800 tons (about 330,000 bags, 60 kg bags), the lowest level since 2014 due to the report. shows that trading activities in Vietnam are slowing down because of the long traditional Tet holiday. Meanwhile, the Brazilian market remained stable due to the absence of New York, prices increased slightly in the country’s main coffee trading centers due to compensatory buying activities after the Carnival holiday, the Reais exchange rate increased slightly 0 .28% up at 1 USD = 4.9860 R$ supported the bullish price trend.
According to observers, the pressure of the first announcement day (FND) is no longer too heavy when the volume of open contracts is no longer too much, while the supply forecast still appears ready.
The largest investment bank BBA in Latin America, headquartered in London, has forecast that Brazil’s new coffee crop for the 2024/2025 crop will be 69.40 million bags, 4.68% higher. compared to the previous 2023/2024 crop year. This forecast is slightly higher than the average of other independent forecasts, which predict that total Brazilian coffee production in the 2024/2025 crop year is likely to reach 68 million bags, on average.
English (giacaphe.com)
