The expectation that the funding package worth 1.9 trillion USD was approved by the US Congress soon, while the long term interest rate of US Treasury bonds rose to a record high, making US stocks stronger, putting pressure on the emerging currency, forcing speculators to shift capital in search of profits in the short to medium term.
Robusta London chart May / 2021 week 8 (February 22, 2021 – February 27, 2021)
For the whole week 8, London market had 1 decreasing session and 4 gaining sessions. Robusta coffee futures for delivery in May increased by $ 104, or 7.60%, to $ 1,373 / ton and for July delivery increased by $ 107, or up 7.74%, to $ 1,490. / ton, very strong increases. Trading volume very high above average.
In contrast, the New York market had 2 decreasing sessions and 3 gaining sessions. Arabica coffee futures for delivery in May increased all 8.35 cents, or 6.47%, to 137.50 cents / lb and July futures increased all 8.30 cents, ie an increase of 6, 34%, to 139.30 cents / lb, increases are also very strong. Trading volume very high above average.
The price of coffee beans in the Central Highlands market increased by 1,300 to 1,400 VND, up to fluctuate in the frame of 33,200 – 32,600 VND / kg.
Coffee futures prices on the two exchanges rose in a row right after the end of the options contract changed to the first delivery announcement (FND) date of March. All inclusive was the expectation of a value 1 financing package. , 9 trillion USD is likely to be approved by the US Congress soon will spur inflation, while long-term high interest rates on US Treasury bonds have put pressure on emerging currencies to make buying pressure. Chemistry is generally slack. This is a rather contradictory issue, investors should be cautious and considerate when moving capital flows to seek profits in the short and medium term markets in the near future.
The gold market is no longer chosen as a temporary shelter and will be an opportunity for coffee markets in the coming week, so investors need to monitor supply and demand fluctuations and weather forecast information in different markets. major producing countries more closely.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that, as of Tuesday, February 16, the non-commercial speculation division reduced their net buying position by 1, 51% down to register net buying of 19,454 lots, equivalent to 5,515,123 bags. This net long position is most likely to bounce back sharply after a period of more active trading since then.
The latest CFTC report from Robusta coffee market in London shows that as of the same reporting period, short-term speculation of money management funds has reduced net selling position by 23.66%, down to registration. net sold at 9,035 lots, equivalent to 1,505,833 bags. This net sell position was most likely reduced to the more active overall trade period since then.
Inventory of Robusta coffee certified and tracked by London floor, as of Monday 22/02 has increased 1,810 tons, or 1.27% from a week earlier, to registration at 144,880 tons (equivalent 2,414,667 bags, 60 kg bags).
English (giacaphe.com)
