Futures prices continued to fluctuate when Arabica producers in Central America continued to experience storms and pressures to sell new Robusta crops from Vietnam began to appear.
Robusta London T1 / 2021 chart session on 11/18/2020
KAt the end of the session, Robusta coffee prices on ICE Europe – London continued to decline. January spot futures fell 14 USD, down to 1,402 USD / ton and futures for March delivery also dropped by 14 USD, to 1,409 USD / ton, the decline is very significant. Trading volume increased very high above average.
In contrast, Arabica coffee prices on the ICE US – New York floor rose for the third consecutive session. Futures for delivery in December increased 3.55 cents, to 119.75 cents / lb and futures for March delivery also increased by 3.55 cents, to 122.85 cents / lb, the very strong increases. Trading volume is 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 33,400 – 33,800 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,529 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton according to the term price in March in London.
Reais copper fell slightly by 0.07%, to $ 1 = 5.3360 Reais after risk rating agency Fitch Ratings put Brazil at BB- and feared a second wave of covid-19. Meanwhile, the state of New York, which announced it would close schools from today, has raised concerns despite positive expectations for the vaccine against the virus.
Coffee prices maintained a mixed trend, rising sharply in New York but falling slightly in London, suggesting that the Robusta market has appeared the pressure of new top producer sales, in addition to increasing concerns of of the Arabica market when the Iota hurricane approached the Central American manufacturing countries, while the aftermath of Hurricane Eta left two weeks ago is still very heavy.
Although there has been preparation, the harvest of the crop in Vietnam is still taking place quite slowly due to the prolonged storms causing slow ripening of the berries, while the market demand requires increasing quality of Robusta beans.
The Eurozone economy, which has been stagnant due to internal contradictions, has to implement successive social gaps because of covid-19, although the European Central Bank (ECB) has taken many stimulus measures. likes to be aggressive, but it seems not enough.
According to observers, the price of Robusta coffee in Southeast Asia extends the current plus difference in the range of 130 – 160 USD / ton compared to the futures price, showing that there is an irrationality that makes the business world not. salty that brought coffee to the London floor to participate in auction.
English (giacaphe.com)
