Ending the first trading session of the week, Robusta coffee price on ICE Europe – London reversed down. March spot futures dropped 33 USD, to 1,312 USD / ton and May delivery also dropped 33 USD, to 1,329 USD / ton, the levels decreased quite sharply. Trading volume maintained at an average level.
Similarly, Arabica coffee price on ICE US floor – New York also reversed to decrease. March spot futures dropped 4.4 cents / lb, to 114.55 cents / lb and May delivery futures also dropped 4.4 cents / lb, to 116.9 cents / lb, sharp declines. The trading volume is quite high above the average.
The price of green coffee in the Central Highlands provinces decreased by VND 500-600, fluctuating in the range of VND 31,000 – VND 31,500 / kg.
The price of Robusta coffee exported grade 2, 5% black broken, stood at 1,379 USD / ton, FOB – HCM, with the difference plus 40-50 USD / ton according to May futures prices in London.
The exchange rate of Reais has decreased by 1.17% to 1 USD = 4.1450 Reais has caused the majority of agricultural prices to plummet because Brazil is a producer of agricultural products. “giant” of the world, while USDX and global stocks continue to increase due to optimism about signing a preliminary trade agreement tomorrow, January 15, which also weakens the currencies of emerging markets. buy. The market has raised speculation that the US Federal Reserve (Fed) will cut USD interest rates in February after the US industrial output report in November was disappointing.
The market is full of rumors of a lack of rain in Brazil in the main Arabica coffee producing regions in the South, while a report from Brazil shows that the rainy season has covered a large area, promising 2020 will be a harvest. “Set a record of all time” According to Rabobank Investment Bank.
In contrast, the Southeast Asian market appears that Indonesia's output of Robusta coffee this year will drop to near-decade lows due to the lack of rain support during the flowering season, causing most cotton to wither just after pollination. .
Records from coffee farmers in the Central Highlands show that harvested crop output is likely to decrease by up to 10% due to lack of rain and a decrease in investment making Robusta coffee beans grow not as expected.
The price of Robusta coffee decreased due to increased sales in the domestic market before the traditional Tet holiday of Canh Ty was near.
