Coffee futures markets again fluctuated in a narrow frame as most investors continued to wait for more basic information, while the Reais was at a favorable level to promote the Brazilian to sell out.
Robusta London Tuesday / 2021 chart session on January 28, 2021
Ending the session, Robusta coffee prices on the ICE Europe – London floor returned to a downtrend. Futures for delivery in March fell 15 USD, down to 1,303 USD / ton and futures for delivery in May dropped 13 USD, to 1,313 USD / ton, the significant reductions. Trading volume remain below average.
Similarly, Arabica coffee prices on the ICE US – New York floor also reversed and decreased. Futures for March delivery decreased 1.5 cents, down 124 cents / lb and futures for May delivery fell 1.45 cents, to 126.1 cents / lb, the decline is very significant. Trading volume maintained above average.
The price of coffee beans in the Central Highlands provinces decreased by 200-300 VND, down to fluctuate in the frame of 30,900 – 31,400 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,393 USD / ton, FOB – HCM, with a difference plus 70-80 USD / ton in term of May in London.
Reais copper fell another 0.55%, down to 1 USD = 5,4360 Reais due to risk concerns spreading abroad shortly after the announcement of the meeting minutes of the Monetary Policy Committee (Copom) with the possibility of Interest rate hike is imminent in Reais. Meanwhile, USDX recovered due to economic recession concerns, causing speculative capital to flow back to the US stock markets.
Coffee prices reversed and declined on both exchanges due to position liquidation “Too buy” before that, for short-term profits, while the weak again of Reais, prompted the Brazilians to sell their coffee heavily as they earned more local currency. In addition, the market temporarily no longer has supply concerns in the short term as inventory reports on both exchanges managed by ICE continue to rise sharply, escaping from the worrying lows reported earlier. October 2020.
However, the trade volume on both world futures was at a level that was only considered a necessary correction by speculators in the context of the negative impact of the new covid-19 strains globally. . The world coffee market is in dire need of one “Nudge” new possibilities can get rid of the current inertia.
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