Short-term speculation continued to take profits and adjust positions after the two exchanges requested to increase the margin level…
Robusta London chart September 2021, week 31 (from August 2, 2021 to August 7, 2021)
For the whole week of 31, the London market had 1 gaining session and 4 decreasing sessions. The price of Robusta coffee for September delivery fell by all 43 USD, or 2.41%, to 1,743 USD/ton and for November delivery fell all by 46 USD, or 2.61%, to 1,754 USD. /ton, the reductions are quite strong. Trading volume above average.
Meanwhile, the New York market had 3 increasing sessions and 2 decreasing sessions. The price of Arabica coffee for September delivery fell all of 2.55 cents, or 1.98%, to 176 cents/lb and December delivery fell all of 3.40 cents, or 1.86%. , to 179.05 cents/lb, significant reductions. Trading volume maintained very above average.
The price of green coffee beans in the Central Highlands market decreased by 100-200 VND, to range from 35,600 to 36,400 VND/kg.
Coffee prices on both exchanges continued to decline due to short-term profit-taking speculation after pushing too high on news of damaging frosts on the Brazilian coffee belt. Besides, the requirement to increase the margin level of the two futures coffee floors also causes speculators to calculate and balance the positions they currently hold.
However, the world coffee market this week still has concerns that the supply of real goods from producing countries will continue to slow down due to the increase in the new strain of covid-19 and the price of sea freight has not yet shown signs of improvement. improvement effect.
In addition, news that the National Monetary Council (CMN) of Brazil in conjunction with the Coffee Economic Defense Fund (commonly referred to as Funcafé) has just announced a support of 1 billion Reais, for plantations Coffee has been damaged more or less through recent frosts. Combined with the Reais weakening again after the Monetary Policy Committee (Copom) in Brazil decided to raise the basic interest rate of the Reais by 1% to 4.25%/year, which will support the Brazilians. reduce selling in the short and medium term, while they will have the crop in 2022 “unforeseen.”
As of Monday, August 2, inventories of Robusta coffee certified by the London floor have decreased by 1,030 tons, or 0.71% down from a week earlier, to register at 143,980 tons (equivalent to 2,399. 667 bags, 60 kg bags).
English (giacaphe.com)
