After a brief moment of prices easing in the beginning of May, it seems that prices resumed its uptrend.
Apparently the prices ease at the end of the previous week, was due mostly to dollar appreciation and did not last for long. Anyhow it reduced the levels and avoided prices ( even the India´s) to get closer to $ 4,000 levels.
An american report at the end to the week say that few deal were seen when the prices eased, however when the prices resumed there was "good demand and trading at higher levels."
Vietnam is still offering a bit lower than Brazil and India and is said to have exported over 50% of their crop already. Than the american report puts 2 questions as crucial: Of the remaining 50% how much is already commited for future shipments ? and how much is the the farmers "iron stock" ? We´ve been also reported of some delays in shippments and possible defaults and - what is more important - by big and reknown Vietnamese companies.
Indonesia next crop and carryover are, as always, a mess of information, with figures between 15k and 40k.
Brazil has no Espirito Santo crop to ship which is usually shipped starting May.
Market operators say that by the middle of July market might get more definition for the rest of the year due to the end of shipments destined to Ramadan celebrations (second week of August this year), however statistics from USA show lower imports which might indicate that importers might need to cover before that date.
Prices informed by USA report on Friday, 14th
BRAZIL
ASTA MAY/JUNE USD $3600/3650/MT FOB BELEM
B1 550 G/L MAY/JUNE USD $3500/FOB BELEM
VIETNAM
ASTA MAY/JUNE USD $3675/3720/MT CF NY/BALT
550 G/L MAY/JUNE USD $3280/3350/MT FOB HCMC
500 G/L MAY/JUNE USD $3080/3125/MT FOB HCMC
Prices in Brazil today Monday 17th
BRAZIL
B1 550 G/L JUNE USD $3350/FOB BELEM
B2 500 G/L JUNE USD $3175/FOB BELEM
(From The Hindu Business Line)
|