Although the market for math will have a strong selling force from Vietnam due to the financial demand for the Lunar New Year celebrations in Tan Suu year and from Brazil as the Reais copper weakens again. But both world derivatives markets still have support from the upcoming March futures expiration.
Robusta London chart May / 2021 week 5 (from February 8, 2021 – February 13, 2021)
For the whole week 6, London market had 3 gaining sessions and 2 decreasing sessions. Robusta coffee futures for delivery in March increased by $ 2, ie up 0.15%, to $ 1,342 / ton and for May delivery increased by all $ 8, or up 0.59%, to $ 1,367. / ton, slight increases. Trading volume is above average.
In contrast, the New York market had 4 declines and 1 increase session. Arabica coffee futures for immediate delivery in March decreased by all 3.35 cents, or 2.69%, down to 121.15 cents / lb and futures for May delivery decreased by all 3.6 cents, or 2, 84%, to 123.05 cents / lb, the reductions are quite significant. Trading volume very high above average.
The price of coffee beans in the Central Highlands market increased slightly from 0 to 100 VND, up fluctuating in the frame 31,600 – 32,100 VND / kg.
Coffee futures prices fluctuated in opposite directions when speculators were overbought on the New York stock exchange and oversold on the London floor need to adjust their position balance before the expiration of the March option contract.
Arabica coffee prices are still negative as Cecafé Brasil reported on January 2021’s export results, contributing to raising export results in the first 7 months of the current coffee year 2020/2021 to a total of 25.36 million. bags of coffee beans, up 23.59% over the same period last crop. Meanwhile, Robusta coffee prices are also stagnant due to the prediction that there will be quite a strong selling force from Vietnam when farmers need cash to spend for the New Year holiday in Tan Suu year.
According to preliminary data reported by Vietnam Customs, coffee exports in January 2021 reached 160,615 tons, equivalent to 2,676,917 bags, up 10.69% over the same period last year. However, the increase in exports in January 2021 did not come as a surprise to the market since the long Lunar New Year holiday of previous years usually falls in January rather than in February.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that as of Tuesday February 2nd, the non-commercial speculation division increased their net buying position by 3, 27% registered to net buy in 22,827 lots, equivalent to 6,471,353 bags. This net long position is most likely to have increased slightly after a period of mixed trade but has been somewhat more positive since then.
The latest CFTC report from Robusta coffee market in London shows that as of the same reporting period, short-term speculation of money management funds increased their net selling position by 20.64%, to registrations. net sale at 17,613 lots, equivalent to 2,935,500 bags. This net short position is most likely to remain stable after a period where the trade has mostly been sideways ever since.
Robusta coffee inventories certified and tracked by the London floor, as of Monday 08/02, increased by 820 tons, or 0.58% from a week earlier, to registration at 143,370 tons ( equivalent to 2,389,500 bags, 60 kg bags).
English (giacaphe.com)
