Instant coffee beans Robusta futures burst "kill more"! Evaporation of more than 13% in 7 trading days
Robusta, the world's second-largest variety of coffee produced and commonly used as instant coffee, has plummeted more than 10 per cent in the past week, leaving prices of just $1878.00 a tonne, the lowest since July 2011, Zerohedge reported.
As shown in the top chart, the non-commercial net excess order of Robusta coffee futures traded on the London Stock Exchange has been rising since 2016. Last week, the net non-commercial position order of Robusta Coffee reached an all-time high level of 44932, but when the futures net excess order reached a high point, the futures price was hit for a while.
Statistics show that Robusta coffee has fallen since April 18, with a cumulative decline of 13.17% in just seven trading days. London Robusta coffee futures fell another 1.05% to close at US $1878.00 per metric ton on Thursday.
Robusta Coffee Daily trend Chart (performance so far this year)
"Bloomberg" reported that from a technical point of view, Robusta coffee futures have fallen below the 100MA and 200 MA moving average, while the relative strength indicator RSI has also fallen below 30 MA. Robusta coffee futures are technically weak.
Above: Robusta futures price: RSI relative strength indicator Photo: Bloomberg
Carlos Mera Arzeno, raw materials commodity analyst at Rabobank International in London, said that Robusta coffee has fallen sharply in recent days, in addition to fundamental factors, the above technical aspects have been rapidly weakening, resulting in multiple single "kill more", is also the main reason for the slump.
Carlos Mera Arzeno said that at present, there are reports in the market that large traders in Vietnam and Indonesia have a lot of Robusta coffee stocks, and the inventory has been seriously expanded, coupled with the fact that hedge funds are starting to sell more orders, causing this wave of Robusta coffee to fall sharply.
"it is estimated that by the end of this year, it will be very difficult for Robusta coffee to return to the bull market." Carlos Mera Arzeno said.
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