Market optimism about global coffee consumption after the introduction of the anti-covid-19 vaccine has pushed prices up …
Robusta London T1 / 2021 chart session on December 14, 2020
KAt the end of the first session of the week, Robusta coffee prices on ICE Europe – London rose for the third consecutive session. Futures for delivery in January increased 14 USD, to 1,349 USD / ton and futures for delivery in March increased by 19 USD, to 1,376 USD / ton, the very significant increases. Trading volume above average.
Similarly, Arabica coffee prices on the ICE US – New York floor followed the third gaining session. Futures for delivery in March increased 4.55 cents, to 126.15 cents / lb and futures for May delivery also increased by 4.55 cents, to 127.95 cents / lb, the increases were very strong. Trading volume quite high above average.
The price of coffee beans in the Central Highlands provinces increased by 300-400 VND, up fluctuating in the frame of 32,400 – 32,900 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,456 USD / ton, FOB – HCM, with the difference plus 60-80 USD / ton according to the term price in March in London.
Reais copper plummeted 1.54%, to $ 1 = 5,1250 Reais due to the cautiousness of the domestic market over the possibility of the Brazilian Government to expand emergency aid until March next year and The plan of vaccination against covid-19 is still unclear.
Meanwhile, US stocks plunged back on fears that the implementation of new socially distancing measures overwhelmed optimism about the start of the covid-19 vaccine in the US yesterday. Speculative capital flows out of the shelter make gold prices plummet and crude oil and coffee benefit from these markets with high liquidity.
Optimistic about the news that Brazil’s coffee exports reached a historical record in recent months have worried, the market returns to worry that this year’s output not only dropped sharply due to drought at the beginning of the cotton-making stage but Brasil coffee trees are still in year for a low yield of the cycle “Two years one”.
Late last month, Volcafe Ltd. It is forecasted that Brazilian coffee production in the 2021/2022 crop will decrease by 33% compared to the previous season, causing the global Arabica coffee market to fall into a record shortage of about 11 million bags this season. Investment broker Marex Spectron says demand will rebound sharply as soon as the covid-19 vaccine is released, leaving the global coffee market short of about 8 million bags in crop year 2021/2022 from a surplus. about 7 million bags surplus in the current season.
However, speculators are also cautious and often seek profits in the short and medium term rather than pouring capital into the long term.
English (giacaphe.com)
