The coffee market continued to show optimism about the new sponsorship policies of Brazil and the US for the income of people affected by the pandemic.
Robusta London T5 / 2021 chart session on March 11, 2021
At the end of the session, Robusta coffee prices on ICE Europe – London rose for the third consecutive session. May spot futures increased by 9 USD, to 1,419 USD / ton and July futures increased by 10 USD, to 1,443 USD / ton, the significant increases. Trading volume in average.
Similarly, Arabica coffee prices on the ICE US – New York floor have for the fourth consecutive session. May spot futures increased 1.5 cents, up 132.35 cents / lb and July futures also increased 1.5 cents, to 134.3 cents / lb, the increase is very significant. Trading volume on mGermany medium.
The price of coffee beans in the Central Highlands provinces increased by 100-200 VND, up fluctuating in the frame of 32,700 – 33,200 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,503 USD / ton, FOB – HCM, with a plus difference at 50-60 USD / ton in term of July in London.
Reais copper surged 2.03%, to $ 1 = 5,5400 Reais, the highest level in two weeks, due to the psychology of foreign speculation with the expectation that the US President would soon sign a package of valuable funding. 1.9 trillion USD after the US House of Representatives approved the revised amendment. Meanwhile, the Reais 44 billion emergency funding package for people with declining income due to the pandemic was allowed to pay outside the spending ceiling of the Government of Brazil, contributing to reinforcing the strength of the Reais. As a result, the market has raised bets on the possibility that the Bank for Monetary Policy (Copom) of Brazil will raise the prime interest rate in the upcoming session, from the current historical low of 2% / year.
The Coffee Exporters Council (Cecafé) in Brazil reported that coffee bean exports in February 2021 increased by 11.23% year-on-year to 2.99 million bags, including Arabica natural coffee. reached 2.68 million bags, up 8.50% and Conilon Robusta coffee reached 321,290 bags, up 42% over the same period.
Also according to Cecafé’s report, the total exports of green coffee in the first 8 months of the current crop year 2020/2021 (Brazilian coffee crop is calculated from July of the previous year to June of the following year), totaling 28. , 35 million bags, up 28.45% over the same period in the previous coffee crop. The increase in exports in the first eight months of the current 2020/2021 crop year could be attributed to seasonal crop yields. “Every two years” hit record level. Therefore, the market has speculated that the supply for Brazil’s upcoming crop will no longer be plentiful.
English (giacaphe.com)
