Soaring ocean freight rates and concerns about next year’s crop in Brazil seem to have taken world coffee futures to new ground…
Robusta London chart 11/2021 week 34 (from August 23, 2021 to August 28, 2021)
For the whole week of 34, the London market had 5 consecutive gaining sessions. The price of Robusta coffee for November delivery increased by all of $136, or 7.23%, to $2,018/ton and for January 2022 delivery, increased by all of $109, or 5.82%, to $1,983/ton, very strong increases. Trading volume above average.
Similarly, the New York market also had 5 consecutive gaining sessions. The price of Arabica coffee for December delivery increased by all 10.70 cents, or 5.90 percent, to 192.20 cents/lb and for delivery in March 2022, all 10.50 cents increased, or an increase of 10.50 cents. 5.70 percent, to 194.75 cents/lb, strong gains. Trading volume very high above average.
The price of green coffee beans in the Central Highlands market increased from 1,700 to 1,800 VND, to range from 39,200 to 40,000 VND/kg.
Coffee prices on both futures exchanges continued their gains throughout the week on concerns that a drought in the Brazilian coffee belt will drag down next year’s crop production, while damage caused by winter frosts. Statistics are not yet available, but the market is estimated to be in the range of 6 to 10 million bags.
At the same time, the outbreak of a new strain of covid-19 disease caused a halt in supply from Robusta producers in Southeast Asia and sky-high sea freight rates, also making the world coffee market worse. have to adjust the price level to compensate somewhat.
Meanwhile, US inflation has exceeded the target level and economic stimulus packages continue to be offered by President Biden, leading the market to speculate that the Fed will soon raise the basic interest rate in USD, which has made US stocks and USDX increase. strong again, pulling prices in many commodity markets up.
The world’s leading producer and exporter of agricultural products has also raised the reais interest rate for the fourth time in a row this year to 5.25%/year and may raise it again next time in September, with the target to reached the threshold of 7% at the end of the year, in order to control inflation and keep the currency rate of Brazil stable at 5.2xxx.
Notify:
- Monday, August 30, London markets are closed for the UK’s Summer Bank holiday, closed all day without trading.
- The New York market is open, trading as usual.
English (giacaphe.com)
