The COVID – 19 pandemics has started in 2020, the commodity price has been affecting and fluctuating for a while. As we know, commodities rely on demand and supply chain, the pandemic has ruined the economy and lower the demand. Recently, the economy has recovered. During April 2021, the ICO composite indicator has risen about 1.4% to 122.03, which is a good beginning. The coffee price has been rising steadily during the last six months. Also, the firm price now is friendly to export. The world coffee export amount has risen 2.4% this year. The shipment has also increased for the first half-year in 2021.
But we still need to pay attention to the situation. “The ICO has revised its production estimate for the current coffee year downwards, owing to Brazil’s smaller 2021/22 Arabica crop. Despite this, world consumption is forecast to remain at 2% below total production of 169.6 million bags in coffee year 2020/21.”, said ICO document. However, the document indicated that the coffee price may continue the upward trend. Average prices for all group indicators increased in April 2021. This is good news, why not try your first coffee trade today?
We love to hear new ideas from traders and want to know what you think!
If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite.
Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.
