Reported Arabica coffee inventory at ICE – New York floor has risen to a higher level than 4 months, also contributed to the decline in prices.
With 2 machines, can be harvested instead of 100 workers, helping Brazilian coffee farmers expand the area.
KEnding the trading session alone at the beginning of the week, Arabica coffee prices on ICE US – New York floor weakened again. Futures for delivery in March decreased 2.6 cents / lb, down 123.35 cents / lb and futures for May delivery fell 2.55 cents, to 125.3 cents / lb, the decline is quite strong. Trading volume below average.
Meanwhile, ICE Europe – London floor is off Gift Day (Boxing Day) UK, no transactions.
The price of coffee beans in the Central Highlands provinces is almost unchanged, still fluctuating in the frame of 32,700 – 33,100 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,493 USD / ton, FOB – HCM, with the difference plus 80-100 USD / ton in term of May in London.
Reais copper decreased by 0.75%, to stand at 1 USD = 5,2390 Reais due to the local adjustment, balance. Besides, low transaction in the last week of the year and the fear of slow implementation of vaccination will put Brazil at risk of falling behind many other major economies. While the outside market showed optimism from the US President signed a new bailout package and the UK had some consensus with the EU on Brexit.
Arabica prices fell not only because Reais copper weakened again and weather forecasts from Brazil showed that there was more than average rainfall in major coffee growing regions in the southeast and the drought was gone. is of considerable concern to concern. While the report of inventories in ICE – New York, has risen to a higher level than 4 months, also contributed to reducing prices again.
The coffee market also has information from Ms. Judith Ganes, a very prestigious commodity expert who has just visited the arid coffee areas in Brazil and said that Brazil’s output in the next season cannot be fully assessed. because drought takes place locally. According to her, any planting area that has been affected by drought causes not only 20-30% damage, but maybe 50% or more.
English (giacaphe.com)
