After the Fed announced it would keep the USD interest rate unchanged until 2023, it supported emerging currencies, making the purchasing power somewhat increase again …
Robusta London T1 / 2021 chart session on December 17, 2020
KAt the end of the session, Robusta coffee prices on ICE Europe – London continued to rise. Futures for delivery in January increased 11 USD, to 1,365 USD / ton and futures for March delivery increased 9 USD, to 1,387 USD / ton, the slight increase. Trading volume quite high above average.
Meanwhile, Arabica coffee prices on ICE US – New York floor are temporarily stable. March spot futures remained unchanged, still stood at 126.6 cents / lb and May futures rose 0.05 cents, to 128.5 cents / lb, with extremely slight increases. Trading volume very low below average.
The price of coffee beans in the Central Highlands provinces increased by 200 VND, up fluctuating in the frame of 32,700 – 33,200 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,467 USD / ton, FOB – HCM, with the difference plus 60-80 USD / ton in term of March in London.
Reais copper rose 0.52%, standing at $ 1 = 5,0800 Reais with domestic market profit taking and foreign prudence to digest the Federal Reserve’s monetary policy decision. US state (Fed) and with the expectation that the new funding package will be approved soon.
Arabica coffee prices were almost unchanged due to the caution of investors against conflicting supply and demand information. Especially the news that CONAB has adjusted its forecast for Brazil output in 2020, increasing by 2.3% compared to the previous forecast, to 63.1 million bags. The reason for this adjustment is that the export results in the past few months have set a new historical monthly export record. Besides, there was also the decline of USDX, which made some investors cautiously take profit and withdraw from the market.
Robusta coffee prices tend to be more positive when the weather in the Central Highlands coffee area lacks sunlight to dry and is forecasted that next week there will be a low pressure into the East Sea, bringing some small rains, causing new supply of new crops. will be slowed down. Meanwhile, the implementation of January 2021 futures contracts in London contributed to support the price increase.
The Foreign Agriculture Division (FAS), under the US Department of Agriculture (USDA), forecasts Vietnam’s production in coffee year 2020/2021 will decrease by 3.5% from the previous crop year, to 30.2. million bags.
English (giacaphe.com)
