The overall decline in purchasing power as the dollar increased in value in a strong basket of currencies put pressure on emerging currencies and more countries announced an increase in social distancing measures to prevent epidemics. covid-19 new variant.
Robusta London Tue / 2021 chart session on January 8, 2021
Ending the last session of the week, Robusta coffee prices on ICE Europe – London dropped for the fifth consecutive session. Futures for immediate delivery in March decreased by 18 USD, down to 1,318 USD / ton and futures for delivery in May also decreased by 18 USD, to 1,329 USD / ton, the decreases were very significant. Trading volume very high above average.
In contrast, Arabica coffee prices on the ICE US – New York floor followed the uptrend. Futures for delivery in March increased by 2.6 cents, to 123.7 cents / lb and futures for May delivered by 2.65 cents, to 125.75 cents / lb, the gains were quite strong. Trading volume very high above average.
The price of coffee beans in the Central Highlands provinces decreased by 300-400 VND, down fluctuating in the frame of 31,400 – 31,800 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,429 USD / ton, FOB – HCM, with a difference plus 80-100 USD / ton in term of May in London.
Reais copper fell another 0.31%, down at $ 1 = 5,4160 Reais, a third consecutive decline showing concerns over a domestic fiscal scenario, while USDX strengthened on expectations for more. The stimulus packages worth trillions will be released on the promise of the newly elected president.
Arabica coffee prices in New York rebounded with a report that Colombia’s coffee output in 2020 was only 13.9 million bags, down 6% from the previous year, despite the largest wet processing Arabica producer in the world. The world has set a production target of 15 million bags and the ambition to increase it to 20 million bags in the next few years.
Meanwhile, the ICO’s November statistical report showed that in the past 12 months (from December 2019 to November 2020), global Arabica coffee exports reached 79.81 million bags, down 3.85%. and Robusta coffee exports reached 48.66 million bags, a decrease of 0.12% in the context of a decline in global consumption due to the covid-19 pandemic.
According to observers, not only was the expectation of the huge stimulus packages promised by the newly elected president, the market began to express concern about the upcoming Brazilian output due to the dry coffee tree. at the beginning of the crop and in the year yields are cyclically low “Two years one”. This is the problem that captures the main attention of the coffee market in 2021.
Vietnamese farmers have only more than 4 weeks to celebrate the New Year, so the spending needs and debt payment at the end of the old lunar year will make the sales volume quite strong. However, it is speculated that selling power will not be like previous years as most of them also have additional income from other fruit trees that have been intercropped.
English (giacaphe.com)
