The cautiousness of speculators has supported coffee prices on both exchanges in the world to recover significantly.
Robusta London Tuesday / 2021 chart session on February 1, 2021
Ending the first session of the week and also the beginning of the month, the price of Robusta coffee on ICE Europe – London continued to recover. Futures for delivery in March increased by 14 USD, to 1,320 USD / ton and futures for May delivery increased by 17 USD, to 1,336 USD / ton, the significant increases. Trading volume maintained very high above average.
Similarly, Arabica coffee prices on the ICE US – New York floor are on the same trend of recovery. Futures for delivery in March increased by 2.4 cents, to 125.35 cents / lb and for May futures also increased by 2.4 cents, to 127.4 cents / lb, a very significant increase. Trading volume maintained very high above average.
The price of coffee beans in the Central Highlands provinces increased by 200-300 VND, up fluctuated in the frame 31,300 – 31,700 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,416 USD / ton, FOB – HCM, with a difference plus 70-80 USD / ton in term of May in London.
Reais copper rose slightly 0.51%, to 1 USD = 5.4480 Reais on expectation of Central Bank of Brazil (BC) to raise interest rates soon, in the context of political changes with the election of New President The House and Senate. While US stocks also had a spectacular recovery session and news of vaccine production was also more positive, along with the information that the bailout package worth $ 1.9 trillion will be negotiated again with a potential replacement. , only 1/3 left.
Coffee prices reversed and recovered when speculation was in progress “Oversold”, it is necessary to adjust the balance of position, helping the trade volume to increase strongly on both futures exchanges. There are also weather reports that some Arabica coffee growing areas in southern Brazil show signs of drought with relatively low average rainfall over the past week.
Speculation on the possibility that coffee growers in Vietnam will reduce sales has occurred. Not only because of the prolonged low price but also due to the resurgence of the epidemic of covid-19, many localities have re-established measures of social distance. It can be seen that the ability to spend and shop for the New Year holiday has decreased sharply because people need to save money in the current context.
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