Copom Brasil raised the Reais copper interest rate by 0.75% / year, helping Brazilians to boost sales of key agricultural products. “Speculative bull” have to slack …
At the end of the session, Robusta coffee prices on ICE Europe – London reversed and dropped. May spot futures fell $ 26, down $ 1,386 / ton and July futures dropped $ 25, to $ 1,411 / ton, the decline is very significant. Trading volume maintained very low below average.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. May futures fell 3.6 cents, down 129.95 cents / lb and July futures dropped 3.55 cents, to 131.95 cents / lb, the sharp decline. Trading volume on mGermany medium.
The price of green coffee in the Central Highlands provinces decreased by 400-500 VND, down fluctuating in the frame of 32,100 – 32,600 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,471 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais copper rose 0.34%, to $ 1 = 5.5670 Reais as the majority of investors reacted to Copom’s raising interest rates higher than expected, while US Treasury bonds soared to the level. The record pulled speculative capital flows into stocks, making most commodity prices, especially the main agricultural products of Brazil, inevitable.
Two-floor coffee prices fell when Brazilians boosted sales for stockpiling and delivery after the upcoming crop.
According to Safras – Mercados, a consultant – analyst in São Paulo, up to now, it is estimated that Brazilian farmers have sold about 28% of their upcoming harvest, 10% higher than the same period last year, due to support from the persistently low Reais rate.
According to observers, the Mexican production block – Central America, with an annual output of about 18 million bags of wet-processed Arabica coffee, has slowed down because it has run out of stock. This has raised concerns of speculation on the New York floor because other sources are not ready.
English (giacaphe.com)