In the coming week, sales force in the domestic market ahead of Vietnam’s traditional Tet holiday and information on the rainy season in Brazil will be the focus of attention for markets.
Robusta London Tue / 2021 week 4 chart (January 25, 2021 – January 30, 2021)
For the whole week 4, London market had 3 gaining sessions and 2 decreasing sessions. Robusta coffee futures for spot delivery in March decreased by $ 4, or 0.31%, down to $ 1,306 / ton and for May delivery dropped by $ 3, or down 0.23%, to $ 1,319. / ton, slight decreases. Trading volume is at medium level.
Similarly, New York market had 2 gaining sessions and 3 decreasing sessions. Arabica coffee futures for spot delivery in March decreased all 1.1 cents, or 0.89%, down to 122.95 cents / lb and futures for delivery in May decreased by all 1.2 cents, or 0, 95%, to 125 cents / lb, significant reductions. Trading volume above average.
The price of coffee beans in the Central Highlands market has decreased by 100-200 VND, down to fluctuate in the frame of 31,000 – 31,400 VND / kg.
Coffee prices continued a downward trend as inventory reports on two futures exchanges managed by ICE were recovering as new supplies from Latin American producing countries continued to be brought to exchanges for registration. Get your certificate waiting to be auctioned. Meanwhile, the continued decline of Reais copper stimulated Brazilians to continue selling, and the prospect of a good rainy season for Arabica in Minas Gerais also had a negative impact on current prices in the short term.
Although the weekly inventory report of ICE Europe – London increased slightly, Robusta coffee prices were supported by two declining monthly export reports. One is Ivory Coast, West Africa’s leading Robusta producer, reported exports in the first three months of the current 2020/2021 crop year totaled only 254,851 bags, plummeting to 62.51. % over the same period of the previous coffee crop. The latest is a report of the General Statistics Office of Vietnam, which estimated that January 2021 exports were only about 2 million bags, down 17.36% over the same period last year. Previously, the market had speculated in the context of temporary high freight rates and too low current rates, preventing farmers from promoting sales of new crops.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York shows that as of Tuesday January 19, the non-commercial speculation division increased its net buying position by 47, 65% registered to net buy in 23,646 lots, equivalent to 6,703,536 bags. This net long position is most likely to have dropped again after the mixed trade but has been somewhat negative since then.
The latest CFTC report from Robusta coffee market in London shows that, by the same reporting period, short-term speculation of money management funds increased their net selling position by 37.12%, to registrations. net sold at 9,836 lots, equivalent to 1,639,333 bags. This net short position is likely to have continued to increase after a period of somewhat more stable trade since then.
Robusta coffee inventories certified and tracked by the London floor, as of Monday 25/01, increased by 650 tons, or 0.46% from a week earlier, to registration at 142,520 tons ( 2,375,333 bags, 60 kg bags).
English (giacaphe.com)
