Some European countries began to loosen their social divide, promising that the demand for coffee in restaurants to soon increase again, while the concern about short supply from leading producers has stimulated. The speculators returned to increase buying …
Robusta London chart May / 2021 week 17 (from April 26, 2021 to May 1, 2021)
For the whole week of 17, London market had 4 gaining sessions and 1 decreasing session. Robusta coffee futures for delivery in July increased by $ 40, or up 2.82%, to $ 1,456 / ton and for September delivery increased by $ 43, or up 2.99%, to $ 1,479. / ton, strong increases. Trading volume above average.
Similarly, New York market had 2 gaining sessions and 3 decreasing sessions. Arabica coffee futures for immediate delivery in July increased all 2.95 cents, or 2.13%, to 141.45 cents / lb and futures for September delivery increased all 2.6 cents, ie increased by 1, 85%, to 143 cents / lb, gains are quite strong. Trading volume very high above average.
The price of coffee beans in the Central Highlands market increased from 600 to 700 VND, up to fluctuating in the frame of 33,200 – 33,800 VND / kg.
Two-floor coffee prices continued to rise when markets returned to concerns about a new supply of new crops from Brazil this year and forecast that there would be no more inventory due to strong export before. While some European countries began to loosen social distance, many restaurants were opened normally, customers could sit back in front of the restaurant instead of having to take it away, as the number of vaccinated people reached the level. In addition, coffee consumption is expected to increase again soon.
According to observers, speculators have returned to the bull market after balancing, adjusting their positions before the May option expiration date on both derivatives because of the abundant capital. from stimulus policies to avert the economic downturn caused by the covid-19 pandemic.
The latest Trader Commitment report from New York’s Arabica coffee market shows that non-commercial speculators have lifted their net buying positions by 36.18% during the trading week to Tuesday. 04 registered net buying in 17,733 lots, equivalent to 5,027,227 bags. This net long position was more likely to have increased after a more active overall trading period since then.
The latest CFTC report from Robusta coffee market in London shows that, by the same reporting period, short-term speculation of money management funds had cut their net selling position by 93.78% compared to a The previous week, down registered net sale at 253 lots, equivalent to 42,167 bags. This net short position has most likely been turned to net buyers after a period of positive overall trade since then.
It is expected that London prices for Robusta coffee this week will fluctuate significantly as supplies from producers in Asia stagnant due to outbreaks causing them to reestablish social distancing measures to prevent the spread.
Notification:
On Monday, May 3, London market has a Boxing Day holiday, closed all day, with no transactions.
English (giacaphe.com)
