Adverse weather at the world’s two second largest coffee producers is a major concern for speculators in both current futures markets.
Robusta London chart 11/2020 session on October 22, 2020
Ending the session, Robusta coffee prices on ICE Europe – London reversed and recovered. November spot futures increased 26 USD, to 1,276 USD / ton, January futures increased 28 USD, to 1,307 USD / ton and March futures increased 24 USD, to 1,313 USD / ton, the good increases strong. Trading volume is very high above average.
Similarly, Arabica coffee prices on the ICE US – New York floor also reversed and recovered. Futures for delivery in December increased 2.55 cents, to 106.7 cents / lb and futures for March delivery rose 2.4 cents, to 109.4 cents / lb, the increases were also quite strong. Trading volume is very high above average.
The price of coffee beans in the Central Highlands provinces increased by 400-500 VND, up fluctuating in the frame 31,600 – 32,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,433 USD / ton, FOB – HCM, with a difference plus 100 – 120 USD / ton in term of March in London.
Reais copper rose 0.37%, up at 1 USD = 5.5950 Reais amid difficulties due to the public debt of the Brazilian government still increasing. While the forex market is still uncertain about the possibility of approving the new financing package has dragged USDX down continuously, despite an improvement in risk sentiment on stock exchanges when the Food Authority. and the Drug Administration (FDA) has approved the use of remdesivir to treat patients hospitalized for covid-19.
Coffee prices rebounded on both futures markets as speculative capital returned to coffee due to concerns about the negative impact of La Nina weather scene that slowed Vietnam’s new Robusta harvest. and some Arabica regions of Brazil are arid. There seems to be a correction in speculative net selling positions “exceed” on the floor of New York when the Reais price rose against the USD and crude oil prices exceeded 40 USD / barrel.
Robusta London market will end the November options contract and conduct the first announcement date (FND) which will contribute to creating surprises in today’s weekend session.
English (giacaphe.com)
