The world commodity markets for raw materials fluctuated wildly because of the impact of the war between Russia and Ukraine…
Robusta London chart May 2022, week 09 (February 28, 2022 – March 5, 2022)
For the whole week of 8, the London market had 1 gaining session and 4 decreasing sessions in a row. The price of Robusta coffee for May delivery fell all of USD 140, or 6.43%, to USD 2,038/ton and for July delivery fell all of USD 144, or 6.68%, to USD 2,013 /ton, the reductions are very strong. Trading volume above average.
Meanwhile, the New York market had 3 decreasing sessions and 2 increasing sessions. The price of Arabica coffee for May delivery fell all 14.40 cents, or 6.03%, to 224.25 cents/lb and for July delivery fell all 14.20 cents, or 5. 99%, to 223 cents/lb, the reductions are also very strong. Trading volume very high above normal.
The price of green coffee beans in the Central Highlands market decreased from 1,100 to 1,200 VND, to range from 38,400 to 39,000 VND/kg.
Although two rounds of negotiations have passed, the war between Russia and Ukraine is not easy to show signs of ending soon when many consecutive sanctions are introduced by the West and Russia’s response. The prices of raw materials on most world markets were drawn into the whirlpool of the war and could never recover, especially for highly liquid commodities such as gold and crude oil that continuously increased. hot.
Although it is also a highly liquid commodity, the price of coffee went in the opposite direction and continued to fall deeply due to speculation, liquidation, and capital shifting to other markets with more attractive profits because coffee is not a commodity. essential and especially speculative on both exchanges was net sold “overhand” before.
Meanwhile, the market speculated that the Fed would not aggressively raise the basic USD interest rate in the upcoming meeting as previously predicted because the war situation in Eastern Europe is currently taking place unpredictably.
The National Coffee Federation (FNC) in Colombia reported coffee exports in February reached only 980,000 bags, down 295,000 bags, or 23.14% lower than the same period last year. This has contributed to cumulative coffee exports in the first 5 months of the current crop year 2021/2022 reaching a total of 5,341,000 bags, a decrease of 627,000 bags, or a decrease of 10.51% compared to the same period of the previous crop year.
Inventories of Robusta coffee, which are certified and monitored by the London floor, as of Monday, February 28, have increased by 3,860 tons, or 4.38% higher than a week earlier, to registered at 92,040 tons. (equivalent to 1,534,000 bags, 60 kg bags). This is the second week London has increased inventories in a row, which has contributed to the decline in world coffee futures prices.
English (giacaphe.com)
