The Brazil report continued to set a record for export in January 2021, having a negative impact on world coffee futures prices.
Robusta London Tue / 2021 chart session on 02/02/2021
Ending the session, Robusta coffee prices on ICE Europe – London reversed and dropped. Futures for delivery in March decreased 21 USD, down to 1,299 USD / ton and futures for delivery in May decreased by 18 USD, to 1,318 USD / ton, the decline is very significant. Trading volume in average.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. Futures for delivery in March decreased 1.95 cents, down 123.4 cents / lb and futures for May delivery fell 1.85 cents, to 125.55 cents / lb, the decline is very significant. Trading volume quite high above average.
The price of coffee beans in the Central Highlands provinces decreased by 300-400 VND, down fluctuating in the frame of 31,000 – 31,400 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,398 USD / ton, FOB – HCM, with a difference plus 70-80 USD / ton in term of May in London.
Reais copper soared 1.72%, to $ 1 = 5.3540 Reais with the election results The new House and Senate presidents belong to the presidential-backed candidate that will boost reform expectations and budget issue. Meanwhile, US stocks continued to recover with the expectation that the new funding package would be approved soon.
Coffee prices reversed and weakened again when there was new information about the impact. Notably, the report of the Ministry of Commerce of Brazil with news that coffee bean exports in January 2021 increased by nearly 36% to 221,880 tons (about 3.7 million bags), continuing to set a record of monthly exports reaching the highest in recent years.
The International Coffee Organization (ICO) reported that global coffee exports in the first three months of the new crop year 2020/2021 totaled 31.59 million bags, up 6.1% from the same period last year. ICO also forecast the world to have a surplus of 5.27 million bags by the end of this coffee crop.
According to observers, the decline in coffee prices on both exchanges is just a temporary reaction of speculators when they shift their capital flows to other derivative markets with higher immediate returns. While the long-term covid-19 epidemic caused a stagnant trade, world coffee prices remained sluggish and unattractive at most.
English (giacaphe.com)
