The market is somewhat more optimistic when the Fed will continue to maintain interest rates at 0 – 0.25%, until at least 2023, to support the economy to recover from the covid-19 pandemic.
Robusta London T1 / 2021 chart session on December 16, 2020
KAt the end of the session, Robusta coffee prices on ICE Europe – London reversed and increased. Futures for delivery in January increased 6 USD, to 1,354 USD / ton and futures for delivery in March also increased by 6 USD, to 1,378 USD / ton, the slight increases. Trading volume above average.
Similarly, Arabica coffee prices on the ICE US – New York floor also reversed and increased. Futures for delivery in March increased 1.95 cents, to 126.6 cents / lb and futures for May delivery also increased 1.95 cents, to 128.45 cents / lb, the increases are very significant. Trading volume maintained above average.
The price of coffee beans in the Central Highlands provinces increased slightly by 100 VND, up fluctuating in the frame of 32,500 – 33,000 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,458 USD / ton, FOB – HCM, with the difference plus 60-80 USD / ton in term of March in London.
Reais copper fell 0.41%, to $ 1 = 5,1070 Reais with caution after the 2021 budget approved by Congress and external financial risk aversion after the Reserve The US Federation (Fed) makes monetary policy decisions without new news. Accordingly, the Fed will continue to buy assets to support the economy and interest rates will remain at 0 – 0.25% until at least 2023.
Arabica coffee prices on the New York floor rebounded as investors continued to expect the funding package to soon reach a consensus before Christmas. While the price of Robusta coffee on the London floor continued to adjust and balance speculative positions before the expiration date of the January 2021 option contract, in the context of many EU countries continuing to implement social gap. Assembly at a higher level.
On the first day of the week, Rabobank predicted that Brazil’s 2021/2022 Arabica coffee output will decrease from 38.8 million bags to 37.2 million bags year on year in a down cycle (2019) due to drought from the beginning of the crop. . This seems to be a somewhat optimistic forecast compared to many forecasts.
Farmers in the Central Highlands coffee area are at the peak of harvesting their crop hoping to complete it before New Year’s Eve 2021. It is observed that this year’s crop has a very high rate of ripe fruit collection as farmers have paid much attention. more on grain quality and post-harvest drying methods.
English (giacaphe.com)
