The price of coffee on both floors remained firm even though the traders had to make technical corrections in the futures markets…
London Robusta chart January 1, 2022, week 46 (from November 15, 2021 to November 20, 2021)
For the whole week 46, London market had 3 decreasing sessions and 2 increasing sessions. The price of Robusta coffee for January delivery fell all of 32 USD, or 1.41 %, to 2,245 USD/ton and for March delivery fell all 25 USD, or 1.13 %, to 2,197 USD. /ton , significant reductions. Trading volume on average.
On the contrary, the New York market had 3 increasing sessions and 2 decreasing sessions. The price of Arabica coffee for December delivery increased by all 13.60 cents, or 6.19%, to 233.30 cents/lb, and for March delivery, all rose 11.45 cents, or 5. 16%, to 233.40 cents/lb, very strong gains. Trading volume very high above average.
The price of green coffee beans in the Central Highlands market decreased by 400-500 VND, to range from 41,400 to 41.9 VND/kg.
The world coffee market not only shows the concern that Brazil’s supply will decrease, even in the year for cyclically high output. “two years one”, but also because the supply from other main producing countries also decreased in the current coffee year 2021/2022 due to unfavorable weather, the spread of covid-19 and high input prices leading to the lack of care for plants. In addition, transportation, delivery delays and increased logistics costs in line with the trend of excess inflation make many manufacturers not want to deliver goods according to signed contracts.
The New York coffee market has ended the exercise of the options contract (November 19) and the first notice date (FND) is also approaching (November 25), promising futures prices will ease. . However, observers believe that the US president’s promulgation of the bill “the infrastructure” worth $550 billion, while the package “Social Security” waiting and the fact that many major central banks have not been in a hurry to raise monetary interest rates because of the increasing covid-19 epidemic, it is not possible to confirm the price trend in the short and medium term.
Meanwhile, it is undeniable that the increase in hedging sales of new crops from producing countries that are currently harvesting new crops, continues to put pressure on the futures markets, in the context of coffee prices. Births just hit a 10-year high.
English (giacaphe.com)
