Speculative capital flows continue to flow strongly in stocks and crude oil, while the market is afraid that the consumption of coffee will decline as many countries must continue to implement social measures because of the pandemic.
Robusta London T1 / 2021 chart session on December 4, 2020
KAt the end of the last session of the week, Robusta coffee prices on ICE Europe – London reversed and decreased. January spot futures fell 9 USD, down to 1,337 USD / ton and futures for March delivery dropped 16 USD, to 1,355 USD / ton, the decline is very significant. Trading volume is at medium level.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. Futures for delivery in March fell 2.5 cents, to 117.55 cents / lb and for May futures fell 2.45 cents, to 119.55 cents / lb, the decline is quite strong. Trading volume is at medium level.
The price of coffee beans in the Central Highlands provinces decreased by 200-300 VND, down to fluctuate in the frame of 31,800 – 32,200 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,435 USD / ton, FOB – HCM, with a difference plus 60-80 USD / ton in term of March in London.
Reais copper increased by 0.25%, standing at $ 1 = 5,1260 Reais continued to show optimism from foreign exchange capital flows and expectations that the stimulus package in the US soon passed supported the stock market. securities increased and USDX decreased.
Two-floor coffee prices fell again when the weather in major producing countries is forecasted very favorable. In addition to increasing pressure to sell new protective goods in Vietnam, there is also Brazil’s November export report reaching a record 4.5 million bags of coffee of all kinds, up to 39.5% over the same period. Previously, in which exports of Arabica natural coffee increased by 30.3%.
According to observers, this clearly illustrates crop yield “Good season” Brazil’s record in 2020, not just cyclical “Two years one” Arabica coffee tree that also Conilon Robusta.
The market remains concerned as more countries have re-established social stretch measures that will limit coffee consumption. There is an unofficial source that the restriction caused by covid-19 may last until next summer and it is expected that coffee consumption will stabilize.
English (giacaphe.com)
