While the risks from the war in Eastern Europe have not diminished, global trade is forced to accept the blockade of Shanghai port, the largest commodity trading center in East Asia…
Robusta London chart May 2022, week 13 (from March 28, 2022 to April 2, 2022)
For the whole week 13, the London market had 3 decreasing sessions and 2 increasing sessions in the middle of the week. The price of Robusta coffee for spot delivery in May fell all 9 USD, or 0.42%, to 2,139 USD/ton, while the price for July delivery increased by all 3 USD, or 0.14%, to $2,130/ton, slight increases/decreases. Trading volume below average.
On the contrary, the New York market had 1 decreasing session and 4 increasing sessions in a row. The price of Arabica coffee for May delivery increased by all 6.55 cents, or 2.95%, to 228.40 cents/lb and for July delivery, all increased by 6.65 cents, or 3. 00 %, to 221.80 cents/lb, very significant levels. Trading volume pretty high above normal.
The price of green coffee beans in the Central Highlands market decreased from 0 to 100 dong, to range from 40,600 to 41,200 dong/kg.
World commodity prices have just had another volatile week in line with expectations of ceasefire negotiations in Eastern Europe and risk aversion.
However, the softening of gold and crude oil prices opened the way for speculative capital to return to help future coffee prices recover.
Besides, there is strong support when The rate of the reais increased sharply by 1.7% against the USD, standing at a high level of about 2 yearsthanks to the massive influx of foreign exchange capital into the stock market, it has led to the prices of many key Brazilian export agricultural products.
While the global logistics problem has not improved significantly and the war in Eastern Europe has increased world trade tensions, now a new variant of covid has broken out forcing China to blockade Shanghai with the policy. zero covid . The partial closure of the busiest trading port in East Asia will certainly cause very serious consequences for the world’s goods trade.
Inventories of Robusta coffee certified and monitored by the London floor, as of Monday, March 28, increased by 170 tons, or 0.17% higher than a week earlier, to registered at 97,500 tons. (equivalent to 1,625,000 bags, 60 kg bags). This has also contributed to the price of coffee futures in London leveling off this week.
English (giacaphe.com)
