The outbreak of a new strain of covid-19 disease caused a temporary decline in global coffee consumption. While the world economy’s recovery was not as expected, rapid inflation, causing major central banks to consider economic stimulus measures, would be a risk that could lower the prices of coffee and many other agricultural commodities. short-term recession…
Robusta London chart 11/2021 week 33 (from August 16, 2021 to August 21, 2021)
For the whole week of 33, the London market had 3 increasing sessions and 2 decreasing sessions. The price of Robusta coffee for September delivery increased by all 34 USD, or 1.86%, to 1,862 USD/ton and for November delivery increased by all 46 USD, or 2.51%, to 1,882 USD. /ton, the increases are quite strong. Trading volume above average.
Similarly, the New York market also had 3 increasing sessions and 2 decreasing sessions. However, the price of Arabica coffee for September delivery fell all of 4.50 cents, or 2.46%, to 178.25 cents/lb and December delivery fell all of 4.25 cents, or 4.25 cents, ie. down 2.28%, to 181.50 cents/lb, the reductions are quite strong. Trading volume maintained very high above average.
The price of green coffee beans in the Central Highlands market increased by 500-600 dong, up to range from 37,500 to 38,200 dong/kg.
The price of Arabica coffee fell before the September futures option expiration date when it was “overbought” previously due to concerns that Brazil’s output next season will decrease because of the frost in July.
On the contrary, the price of Robusta coffee continued to recover from the news that the leading producer of exports dropped, because the price of sea freight has increased dramatically, making the import markets not want to buy at this time.
It is also easy to see that speculative capital flows have shifted strongly to the Arabica coffee market because the profit margin of the New York Stock Exchange is more attractive in the short term.
As of Monday, August 16, inventories of Robusta coffee certified by the London floor have decreased by 1,090 tons, or 0.77% from a week earlier, to register at 141,330 tons (equivalent to 2,355 tons. 500 bags, 60kg bags).
English (giacaphe.com)
