Vietnam’s Robusta coffee exports dropped continuously, which is a positive support factor for London futures prices in the short term…
For the whole week of 23, London market had 3 increasing sessions and 2 decreasing sessions. The price of Robusta coffee for spot delivery in July fell by all 20 USD, or 1.24%, to 1,592 USD/ton and for September delivery fell all 19 USD, or 1.16%, to 1,619 USD. /ton, the reductions are very significant. Trading volume high above average.
Meanwhile, the New York market had 1 gaining session and 4 decreasing sessions. The price of Arabica coffee for July delivery fell all of 4.20 cents, or 2.60 percent, to 157.45 cents/lb and for September delivery fell all of 4.05 cents, or 2. 47%, to 159.60 cents/lb, sharp declines. Trading volume very above average.
The price of green coffee beans in the Central Highlands market decreased by 500-600 dong, down to the range of 33,800-34,400 dong/kg.
The price of coffee on both floors dropped again when the Brazilian weather had rain on a large scale, supporting the quality of new-season coffee beans, although the rainfall was still low compared to the average level of many years.
According to the weekly report of Safras & Mercados, although only harvested nearly 50% of the crop, Brazilians have sold more than 40% of this year’s output by forward delivery, making it difficult for the price of Arabica coffee in New York to rise. targeted at 200 cents/lb as “speculative bull” in the market of expectations. Coffee traders at the trading center of São Paulo – Brazil expect Arabica coffee prices to close the year at 165 cents/lb.
Meanwhile, exports of Robusta coffee from Vietnam continued to decline, not only because of objective reasons due to the covid-19 epidemic and logistical obstacles, but also because the inventory was mainly in the hands of FDI enterprises. so they are not interested in selling at the current low export price.
The latest Commitment of Traders (CFTC) report from the New York Arabica coffee market shows that the non-commercial speculative sector increased its net long position by 19.05% in the trade week to Tuesday. on June 1, registered a net purchase at 42,156 lots, equivalent to 11,951,039 bags. This net long position has most likely eased back slightly after the mixed trade period but has been somewhat more negative since then.
The latest CFTC report from the London Robusta coffee market shows that, for the same reporting period, short-term speculation by Money Management Funds increased their net long positions by 17.57% over a week. Previously, registered to be a net buy at 34,776 lots, equivalent to 5,796,000 bags. This net long position has most likely eased back slightly after a somewhat more negative trade period since then.
As of Monday, June 7, inventories of certified Robusta coffee on the London floor have decreased by 2,420 tons, or 1.39% from a week earlier, to 155,180 tons (equivalent to 2,586,333) bags, bags of 60 kg).