COFFEE NEWS, VIETNAM PRODUCTS NEWS

Some Information about the London Coffee Exchange

Posted on by content.vinahugo
01
Oct

Type of Vietnamese Coffee on the London Exchange:

The quoted price on the London Exchange is for R2 coffee with 1% impurities, 5% black/broken beans, 13% moisture, and 90% above screen size 13 (5mm). This is the quality level that Vietnam can process and deliver.

How Robusta Coffee Prices on the London Exchange Are Calculated?

Example: According to the London Exchange, the Robusta coffee price is 4,266 USD/ton.

Coffee price (VND/kg) = (Price (USD/ton) × Exchange rate (VND/USD)) / 1000

⇒ Coffee price = (4,266 × 25,137) / 1000 = 107,234 VND/kg

  • Unit of quotation: USD/ton (on the London Exchange)

  • Trading unit: 1 lot = 10 tons (on the London Exchange)

Technical Terms in Coffee Trading

Note: Prices on the London Exchange are quoted in USD/ton, while prices on the New York Exchange are quoted in cents (USD) per pound (lb).
1 lb = 0.453 kg.

  • Minimum price fluctuation:

    • London Exchange: 1 USD/ton

    • New York Exchange: 0.05 cents/lb

  1. Futures (Contract Months): The months available for trading and delivery.

    • On the London Robusta market: only odd months are traded.

    • On the New York Arabica market: trading months are March, May, July, September, and December (no January).

  2. Last Price (Matched Price): The price where buyers’ and sellers’ bids meet (also called the Last).
    Note: Currently, the matched price shown on VFM is based on the London Exchange, not on buy/sell offers submitted within VFM.

  3. Change: The difference between the current matched price and the previous session’s closing price (up or down).

  4. % Change: The percentage change compared with the previous session’s closing price.

  5. Volume: The number of contracts traded during the session up to the present moment.

    • London: 1 lot = 10,000 kg

    • New York: 1 lot = 37,500 lbs ≈ 16,987.5 kg (rounded to 17,000 kg).

  6. High: The highest matched price reached during the session.

  7. Low: The lowest matched price reached during the session.

  8. Open: The first matched price of the session (opening price).

  9. Previous Close: The last matched price of the previous session (closing price).

  10. Bid: The highest price a buyer is willing to pay.

  11. Bid Volume: The quantity buyers are bidding for, measured in lots, at the bid price.

  12. Ask (Offer): The lowest price at which sellers are willing to sell.

  13. Ask Volume: The quantity sellers are offering, measured in lots, at the ask price.