Coffee prices decreased at the end of the week due to a sharp increase earlier and the weakening Reais helped Brazil boost export sales …
Robusta London T5 / 2021 chart session on 02/26/2021
Ending the last session of the week, Robusta coffee prices on ICE Europe – London decreased. May spot futures fell $ 3, down $ 1,473 / ton and July futures dropped $ 5, to $ 1,490 / ton, slight decreases. Trading volume quite high above average.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. May spot futures fell 2.55 cents, down 137.5 cents / lb and July futures also dropped 2.55 cents, to 139.3 cents / lb, the decline is very significant. Trading volume maintained very high above mGermany medium.
The price of coffee beans in the Central Highlands provinces decreased by 100 VND, down fluctuating in the frame 33,200 – 33,600 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,550 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in terms of July futures in London.
Reais copper plummeted 1.65%, to $ 1 = 5.6020 Reais, low since November 4, 2020 after the negative impact of foreign exchange on emerging currencies due to long bond yields US term continued to rise, while there were still disagreements about the interference of the Government of the Federation of Brazil in state companies.
Coffee prices decreased at the end of the week not only due to speculators balancing their positions and short-term profit taking, but also due to the continued decline of Reais, which motivated Brazil to sell exports.
The National Coffee Federation (FNC) of Colombia, the world’s leading producer of high quality wet processed Arabica, has released a report that predicts production in the first 6 months of the new year will be about 6.06 million bags, a decrease of 1.4% y-o-y, with the target output for coffee year 2020/2021 reaching 14 million bags. Under the agreement, Arabica coffee originating from Colombia has a very high fixed plus rate when auctioned on ICE – New York.
English (giacaphe.com)
