Although exports increased in the first 5 months of the current crop year 2020/2021, Cecafé has been worried about a shortage of coffee for the consumer market in the next season …
Robusta London T1 / 2021 chart session on December 10, 2020
KAt the end of the session, Robusta coffee prices on ICE Europe – London reversed and increased. Futures for delivery in January increased 14 USD, to 1,326 USD / ton and futures for delivery in March increased 17 USD, to 1,351 USD / ton, the very significant increases. Trading volume quite high above average.
Similarly, Arabica coffee prices on the ICE US – New York floor reversed and increased. Futures for delivery in March increased 4 cents, to 121.05 cents / lb and for May futures rose 4.05 cents, to 122.85 cents / lb, the increases were very strong. Trading volume very high above average.
The price of coffee beans in the Central Highlands provinces increased by 400-500 VND, up fluctuating in the frame 31,900 – 32,300 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,431 USD / ton, FOB – HCM, with the difference plus 60-80 USD / ton in term of March in London.
Reais copper surged 2.53%, to stand at $ 1 = 5.0420 Reais is the high since the outbreak of the pandemic. “additional” foreign exchange exchange of the Bank of Brazil (BC) and the announcement of continuing to maintain the current interest rates of the Committee for Monetary Policy (Copom) has attracted foreign investment flows into the Brazilian stock market.
The US stock market had a volatile session with an unclear trend in the context that the Government and the opposition have not approved a new funding package before Christmas and the end of the year.
According to the Coffee Exporters Association (Cecafé), in the first five months of the current crop year, from July 2020 to the end of November 2020, Brazil exported a total of 18.17 million bags, up 17.17 million bags. % of exports in the first five months of the 2019/2020 crop year. The reason for this relatively high export efficiency is because the harvest of 2020 is “service “ cyclically “Two years one”. Note: The coffee crop in Brazil is from the beginning of July of the previous year to the end of June of the following year.
Meanwhile, each year, Brazil domestic consumption of more than 22 million bags and for export about 42-45 million bags. This has led to the current concern of Cecafé when the upcoming crop will be “Failure”, accompanied by drought from the start “Cotton” Therefore, it is inevitable that the next crop will reduce at least 20% of output.
According to observers, coffee prices rebound on both exchanges seems to be the sure thing to happen. However, the uptrend on Robusta futures market is not really clear due to strong new selling pressure from Vietnam, but rather due to the liquidation and adjustment of speculative positions at the expiration of the option contract. January 2021 deadline is coming.
English (giacaphe.com)
