The New York Arabica market continued to weaken as the spring monsoon season hit the Brazilian coffee belt, while the covid-19 epidemic and stalled Robusta supply pushed London futures prices to new 4-year highs. …
Robusta London chart 11/2021 week 37 (from September 13, 2021 to September 18, 2021)
For the whole week of 37, the London market had 5 consecutive gaining sessions. The price of Robusta coffee for spot delivery in November increased by all 103 USD, or 5.03%, to 2,151 USD/ton and for delivery in January 2022 increased by all 83 USD, or 4.07%, to $2,021/ton, strong increases. Trading volume on average.
On the contrary, the New York market had 2 gaining sessions and 2 decreasing sessions. The price of Arabica coffee for December delivery fell all of 1.65 cents, or 0.88%, to 186.40 cents/lb and for March delivery, fell all of 1.55 cents, or down. 0.81%, to 189.20 cents/lb, significant reductions. Trading volume above average.
The price of green coffee beans in the Central Highlands market increased from 1,200 to 1,300 dong, to range from 41,000 to 41,700 dong/kg.
Although the information that the early spring rainfall in the Brazilian coffee belt is not enough to improve the ground moisture, it is enough to cause the price of Arabica coffee to decline again. Besides the weakening Reais has encouraged Brazilians to boost export sales. Safras & Mercados reports that they have sold more than 60% of their freshly harvested crop. In addition, helping to support their strong selling is that the New York futures price is currently at a high level in recent years.
In contrast, the report of reduced export volume from the two main Robusta producers in Southeast Asia and continuous decline in floor inventories, amid concerns about the supply of coffee to major consumer markets stalled because of The spread of the newly mutated covid-19 disease and sky-high shipping rates, have pushed London coffee futures to a new four-year high.
As of Monday, September 13, inventories of Robusta coffee certified by the London floor have decreased by another 250 tons, or 0.18% from a week earlier, to register at 136,660 tons (equivalent to 2,277. 667 bags, 60kg bags), recorded a decrease in inventories for 8 consecutive weeks.
English (giacaphe.com)
