After a volatile week due to the US election, a strong recovery in world stock markets attracted speculative capital flows again. However, the world economy lacks certainty as hiding assets still dominate today.
Robusta London T1 / 2021 chart session on November 9, 2020
KAt the end of the first session of the week, Robusta coffee prices on ICE Europe – London decreased. January spot futures fell 3 USD, down to 1,347 USD / ton and futures for March delivery dropped 2 USD, to 1,361 USD / ton, the slight decrease. Trading volume remained very low below average.
In contrast, Arabica coffee prices on the ICE US – New York floor tend to be mixed. Spot futures in December decreased slightly 0.1 cent, down 106.85 cents / lb, while the futures all increased slightly. Specifically, futures for delivery in March increased by 0.1 cent, to 109.55 cents / lb and for May futures increased by 0.15 cents, to 111.35 cents / lb. Trading volume increased very high above average.
The price of coffee beans in the Central Highlands provinces decreased by 0-100 VND, down to fluctuating in the frame of 32,500 – 33,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,481 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of March in London.
Reais copper rose slightly by 0.03%, standing at $ 1 = 5.3860 Reais due to investor reaction to US election results and news reflecting progress in vaccine trials. The world stocks reversed to recover, attracting speculative capital flows but hidden assets still prevailed, oil prices fell before the possibility of a third outbreak of covid-19 epidemic.
The two futures corrected coffee markets when speculators waited for a clearer trend. However, the trading volume on the New York floor soared as to confirm that coffee is still the leading agricultural market.
According to observers, Cecafé – Brasil is expected to deliver nearly half a million bags of Arabica natural coffee to New York by the end of this year with a fixed discount, while inventories at ICE warehouses have recently decreased. 20-year low due to the supply of high-quality Arabica mainly from the Mexican bloc and the Central American region gradually decreased because the price was too low.
This is also a common concern of producing countries and international coffee traders as paper goods dominate the derivative coffee floors.
English (giacaphe.com)
