The incident clogged the world’s busiest maritime route, which would cause the price of Robusta coffee to fluctuate next week, forcing many shipping vessels to choose a detour if the opening of the Suez Canal does not. proceed as planned …
Robusta London chart May / 2021 week 12 (from March 22, 2021 to March 27, 2021)
For the whole week 12, London market had 2 gaining sessions and 3 decreasing sessions. Robusta coffee futures for immediate delivery in May increased by 19 USD, ie increased by 1.38%, to 1,399 USD / ton and for delivery in July increased by 12 USD, or by 0.85%, to 1,416 USD. per ton, significant increases. Trading volume in average.
In contrast, the New York market had 2 decreasing sessions and 3 gaining sessions. Arabica coffee futures for immediate delivery in May decreased by all 0.5 cents, or 0.39%, down to 128.5 cents / lb and futures for July delivery fell all 0.55 cents, ie decreased by 0, 42%, to 130.5 cents / lb, slight decreases. Trading volume above average.
The price of coffee beans in the Central Highlands market increased by 400-500 VND, fluctuating within the 32,500 – 33,000 VND / kg frame.
Coffee futures prices last week were mixed when they fell on the New York floor and increased on the London floor.
Arabica coffee prices continue to weaken due to weather reports in Brazil having had very good rainfall supporting the development of new crops, while the Monetary Policy Committee (Copom) reported that it is likely to raise The Reais copper prime rate added 0.75% again at the May session, in order to maintain inflation targeting, which stimulated domestic speculation to continue to sell out, further weakening Arabica coffee prices.
In contrast, Robusta coffee prices rebounded sharply at the weekend session when the news of the container transport ship ran aground in the Suez Canal, which caused the world’s busiest shipping route to be halted. Market sources said that the Dutch port of TeraTelp was the destination of the ship, in which there were many Robusta coffee from Vietnam delivered to Europe. In the context of an increase in home instant coffee consumption due to social disparities, delayed deliveries or the option to go around Africa can increase costs and possibly make your morning cup of coffee. increase.
Based on your analysis Lloyd’s ListUK’s oldest, world’s oldest shipping news delivery newspaper, news agency Blomberg said that every day about 9.6 billion USD of goods are congested, of which goods from the West to about 5.1 billion USD and from the East to about 4.5 billion USD.
The National Coffee Federation (FNC) in Colombia said traditional wet-processed Arabica production in the 2019/2020 crop year totaled 13.9 million bags, down 6% from the previous crop year. FNC aims to achieve a total production of 14 million bags in the current crop year 2020/2021. However, FNC also expressed concern that persistently low New York futures prices would discourage farmers to invest in the farm, possibly even reducing the number of ripe fruit picking, resulting in poor coffee bean quality. as high as expected. Colombia is the world’s leading producer of high quality wet processed Arabica coffee. Arabica coffee originating from Colombia has a very high plus difference when it is selected for delivery through the New York floor.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that as of Tuesday, March 16, the non-commercial speculation division had reduced their net buying position by 4, 22%, down registered to net buy in 28,224 lots, equivalent to 8,001,379 bags. This net long position is most likely to have declined further after a mixed trade but has been somewhat negative since then.
The latest CFTC report from Robusta coffee market in London shows that as of the same reporting period, short-term speculation of money management funds has cut their net buying position by 8.36%, down to post. The net buying volume was 18,693 lots, equivalent to 3,115,500 bags. This net long position has most likely declined further after a period of mostly flat trade since then.
Inventory of Robusta coffee was certified and tracked by the London floor, as of Monday, March 22, it increased by 4,110 tons, or 2.85% from a week earlier, to register at 148,270 tons. (equivalent to 2,471,167 bags, 60 kg bags).
Container shipping ships clogged the world’s busiest shipping route.
English (giacaphe.com)
