While speculators on the New York Stock Exchange strongly liquidated and took profits before the year-end holiday, speculation on the London floor had the support of the inverse price structure, so they continued to buy…
Robusta London chart March 2022, week 52 (from December 27, 2021 to December 31, 2021)
For the whole week of 52, the London market had 2 gaining sessions and 2 decreasing sessions. The price of Robusta coffee for spot delivery in March increased by all 17 USD, or 0.72%, to 2,370 USD/ton and for May delivery increased by all 9 USD, or 0.39%, to 2,310 USD. /ton , slight increases. Trading volume below average.
On the contrary, the New York market had 4 decreasing sessions and 1 increasing session. The price of Arabica coffee for March delivery fell all of 5.10 cents, or 2.21%, to 226.10 cents/lb and for May delivery also fell all of 5.10 cents, or 2. .21 %, to 226 cents/lb, sharp declines. Trading volume below average.
The price of green coffee beans in the Central Highlands market decreased slightly from 0 to 100 VND, down to range from 42,200 to 42,700 VND/kg.
Arabica coffee prices continued to decline due to speculation to take profits and liquidate positions before the year-end holiday to avoid risks. While the price of Robusta coffee adjusted up to speculate on spot sales at the floor in the context of allocated inventory “certification” continued to decline, although there was information about a sizable amount of goods on their way to European ports, which also helped to ease market sentiment.
The highlight of the week is the report of the General Statistics Office of Vietnam. According to the report, coffee exports in December are estimated at 130,000 tons, down 6.5% over the same period last year and therefore, cumulative exports for the whole year 2021 is estimated to total 1.52 million tons, down nearly 2.7% compared to the whole export of 2020. This is the basic factor that has supported the London futures price to maintain its increase in recent weeks.
Meanwhile, the weather report in the two main coffee growing states Minas Gerais and São Paulo in southern Brazil continues to have favorable rains, which will support the new crop to grow well with many promises to offset the share. for damage from drought and frost events in 2021.
Note: Today, Monday, January 3, the London market is closed for the New Year holiday, no transactions. The New York market opens late, after 19:30.
English (giacaphe.com)
