Two-floor coffee prices were mixed when the Central American Arabica region suffered heavy rain and floods caused by consecutive tropical storms, while the pressure to sell new crops of Vietnam also began to appear. .
Robusta London T1 / 2021 week 47 chart (November 16, 2020 – November 21, 2020)
For the whole week 46, London market had 4 decreasing sessions and 1 gaining session. Robusta coffee futures for delivery in January decreased by 24 USD, or by 1.7%, down to 1,486 USD / ton and for delivery in March also decreased by 24 USD, or by 1.69%, to 1,395. USD / ton, significant reductions. Trading volume is at medium level.
In contrast, New York market had 4 gaining sessions and 1 decreasing session. Arabica coffee futures for immediate delivery in March increased all 5.85 cents, or 5.21%, to 118.05 cents / lb and futures for May delivery also increased by all 5.85 cents, ie an increase of 5. , 13%, to 119.95 cents / lb, dramatic increases. Trading volume is very high above average.
The price of coffee beans in the Central Highlands market decreased by 700 to 800 VND, down to fluctuating in the frame of 33,000 – 33,400 VND / kg.
Coffee prices on the two floors were almost in opposite movements throughout the week, which is uncommon. The main reason is the impact of basic factors on two main production regions. Arabica coffee prices rebounded sharply from the beginning of the week when two consecutive tropical storms landed in the Central American producing countries, which are in a new harvest this year. This is the raw material area that supplies more than 70% of the coffee traded on the New York floor. However, prices eased at the end of the week when the US Department of Agriculture (USDA) forecasts that Brazilian output in coffee year 2020/2021 will be about 67.9 million bags, down nearly 3% from the previous crop, despite the report. The report did not mention dry weather at the beginning of the new season.
Meanwhile, Vietnam’s Central Highlands coffee region has accelerated the harvest of new Robusta coffee after consecutive storms. Observers noted that there was a hedge selling pressure mainly from traders with foreign capital. “Selling paper goods to buy real goods”.
USDA has also revised its forecast for coffee crop year 2020/2021 to be about 29 million bags, a decrease of 0.5 million bags compared to the previous forecast, due to unfavorable weather conditions affecting production. amount. At the same time, USDA also revised down its forecast for export volume to 26.65 million bags because prices have not really improved.
As of Monday, November 16, inventories of Robusta coffee certified and tracked by the London floor increased by 1,910 tons, up 1.46% from the previous trading week, to registration at 133,120 tons. (equivalent to 2,218,667 bags, 60 kg bags).
English (giacaphe.com)
