European and American countries easing social gap will boost demand, while new crop supply is a major concern of investors on both futures …
Robusta London chart Saturday / 2021 week 18 (from May 3, 2021 to May 8, 2021)
For the whole week of 18, London market had 3 gaining sessions and 1 decreasing session. Robusta coffee futures for immediate delivery in July increased by $ 83, or by 5.70%, to $ 1,539 / ton and for futures for September delivery increased by $ 82, or up 5.54%, to $ 1,561. / ton, very strong increases. Trading volume very high above average.
Meanwhile, New York market had 3 gaining sessions and 2 decreasing sessions. Arabica coffee futures for immediate delivery in July increased all 11.45 cents, or 8.09%, to 152.90 cents / lb and futures for September delivery increased all 11.80 cents, or up 8, 25%, to 154.80 cents / lb, very strong increases. Trading volume very high above average.
The price of coffee beans in the Central Highlands market increased by 800-1,000 VND, and fluctuated in the frame of 34,300 – 34,700 VND / kg.
Two-floor coffee prices continued to rise as USDX continued to decline and many European and American countries loosened their social stretches, promising that demand would increase rapidly due to the reopening of restaurants and customers. can sit in open spaces instead of having to carry it.
According to observers, hedge funds have returned to the market to increase buying as soon as short-term profit taking has pushed prices up. While extreme dry weather in Brazil is forecast, the quality of the beans to be harvested will not be as expected and increases the risk of winter frost on the coffee belt in southeastern Brazil.
In addition, the Colombian protests, aimed at protesting against the new tax rate expected by the government, to offset the 6.8% drop in GDP last year and the rising unemployment due to the covid-19 pandemic, caused Delayed export shipments also contributed to the spike in New York prices.
The week’s standout was the International Coffee Organization’s April Trade Report (ICO). Accordingly, ICOs have revised their global excess forecast for crop year 2020/2021 by 1.32%, to 3.286 million bags. This means further shortages in inventories carried over to the new coffee crop 2021/2022, while forecasts for Brazil’s new crop production have dropped significantly.
The latest Trader Commitment Report (CFTC) from New York’s Arabica coffee market shows that non-commercial speculators have lifted their net buying positions by 89.29% during the trade week to Tuesday. on April 27th, the net buying volume was registered at 33,565 lots, equivalent to 9,515,529 bags. This net long position is more likely to have eased after a more negative 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 has converted net selling position to net long position with 10,059 lots, equivalent to 1,676,500 bags. This net long position is likely to have strengthened further after a period of positive trade since then.
As of Monday, May 3, stocks of Robusta coffee certified by London floor increased by 3,173 tons, or 2.10% from a week earlier, to registration at 154,090 tons (equivalent to 2,568. 167 bags, 60 kg bags).
English (giacaphe.com)
