The increasing selling pressure of the new crop on the London floor will be detrimental to farmers of the main Robusta coffee producing countries in Southeast Asia…
Robusta London chart January 1, 2022, week 49 (from December 6, 2021 to December 11, 2021)
For the whole week 49, London market had 2 increasing sessions and 3 decreasing sessions. The price of Robusta coffee for January delivery fell all of 10 USD, or 0.42%, to 2,376 USD/ton and for March delivery fell all 7 USD, or 0.30 %, to 2,291 USD. /ton , slight decreases. Trading volume above average.
Similarly, the New York market had 2 increasing sessions and 3 decreasing sessions. The price of Arabica coffee for March delivery fell all of 10.75 cents, or 4.42 percent, to 232.60 cents/lb and for May delivery fell all of 10.05 cents, or 4. 15%, to 232.35 cents/lb, sharp declines. Trading volume maintained quite above average.
The price of green coffee beans in the Central Highlands market decreased by 300-400 dong, down to range from 42,200 to 42,600 dong/kg.
Speculation on both futures exchanges heavily liquidated when the Omicron variant prompted many countries to re-establish social distancing measures, especially restricting entry from eight countries in South Africa, making the market raising the concern that coffee consumption will decline again. While excess inflation continues to rise, it will lead to the possibility that central banks will reduce economic stimulus measures and raise key interest rates of currencies to pay attention next week.
During the week, the market witnessed Brazil raise the basic interest rate of the Reais by 1.5%, to 9.25%/year, creating favorable conditions for Brazilian farmers to sell agricultural products to export the strength of the country. them like coffee, sugar, soybeans…
Coffee farmers in Brazil have sold more than 80% of the Conilon Robusta production of the 2021 crop under futures contracts at prevailing high prices. This poses for farmers and domestic traders in Vietnam about choosing the appropriate selling method, limiting the method of sale. “send warehouse” allegedly put themselves at a disadvantage like in previous years. However, to do this they need strong financial support.
In the next week, the London market expires November futures contracts, there will be liquidation, balancing short-term speculative positions as data shows that the forward month-over has only just begun.
English (giacaphe.com)
