The futures markets continued to be in the opposite direction, declining in London and rising in New York, showing up as a trading way of finding profits on the two derivatives.
Robusta London chart 11/2020 session on August 27, 2020
Ending the session, Robusta coffee prices on ICE Europe – London returned to weaken. November spot futures fell 22 USD, down to 1,405 USD / ton and futures for Jan / 2021 also dropped 22 USD, to 1,413 USD / ton, the decline is very significant. Trading volume is at medium level.
In contrast, Arabica coffee prices on the ICE US – New York floor increased. Futures for immediate delivery in December increased 0.25 cents, to 122.35 cents / lb and futures for March delivery rose 0.2 cents, to 123.7 cents / lb, the slight increase. Trading volume is above average.
The price of coffee beans in the Central Highlands provinces decreased by 300-400 VND, down fluctuating in the frame of 32,900 – 33,400 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,525 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of November in London.
Reais rose 0.71%, to $ 1 = 5.5750 Reais due to the positive impact of the foreign exchange market after the chairman of the US Federal Reserve (Fed) announced a new view that it would not Immediately intervene in the money market to maintain an average 2% inflation rate and should keep interest rates low for a longer period of time. US stocks also rebounded as confidence in the stability of income and expected personal spending increased.
The International Coffee Organization (ICO) had expected a shortage of global supply of 486,000 bags to be negligible. But inventories were “certified” by the two exchanges at a record low level because the futures prices fluctuated at a long-lasting low, which did not attract traders to bring coffee to the two floors to register. Auction. Supply – demand at this time only contributes to the reason for the derivative financial business to seek profits, while the market also has brokers, investment consultants who forecast excess when there is a lack of additional contribution to create waves. to attract more speculation.
English (giacaphe.com)
