Coffee prices continue to weaken amid concerns of declining demand due to the third outbreak of covid-19 epidemic in Europe …
Robusta London T5 / 2021 chart session on March 24, 2021
Ending the session, Robusta coffee prices on ICE Europe – London continued to decline. May spot futures fell by 11 USD, down to 1,366 USD / ton and futures for July delivery dropped by 9 USD, to 1,390 USD / ton, the significant reductions. Trading volume below average.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. May spot futures fell 1.1 cent more, down 126.5 cents / lb and July futures also dropped 1.1 cent more, to 128.55 cents / lb, the significant reductions. Trading volume quite high above mGermany medium.
The price of coffee beans in the Central Highlands provinces decreased by 100-200 VND, down to fluctuate in the frame of 31,900 – 32,400 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,450 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais copper plunged 2.21%, to $ 1 = 5,6380 Reais after the emergency aid request of state governors due to pandemic outbreak increased financial risk, while weakening contagious. spread of emerging currencies accelerated the decline against the USD before the possibility of Mexico “Inability to repay debt” to the International Monetary Fund (IMF).
Meanwhile, not only Germany, but also France, Italy also announced the expansion of social gap measures this time to cope with the third outbreak of covid-19, which is a common concern of the market due to demand. Coffee consumption will decrease.
The decline in Reais copper was also an opportunity for Brazilians to sell heavily. According to the brokers, they have sold nearly 30% of the upcoming crop on a forward-delivery basis, despite the prediction that it will be a very significant crop failure.
Brazil will start harvesting the new Conilon Robusta crop right after Easter with expected production of this kind to increase by more than 10% from the previous crop. While London inventory reports have now risen to a year high after hitting a two-year low in October 2020.
English (giacaphe.com)
