Disappointed because the new funding package has not been approved by the US Congress, while the weather forecast for Brazil this weekend and the beginning of next week will have significant rainfall covering the main coffee growing states, causing world coffee prices. sagging.
Robusta London chart 11/2020 session on October 23, 2020
Ending the last session of the week, Robusta coffee prices on ICE Europe – London decreased. November spot futures fell 5 USD, down to 1,271 USD / ton, January futures dropped 2 USD, to 1,305 USD / ton, the levels decreased slightly, while the futures delivered no change. Trading volume is at medium level.
Meanwhile, Arabica coffee price on ICE US – New York floor dropped again. Futures for December delivery fell 1.1 cents, to 105.6 cents / lb and futures for March delivery fell 1 cent, to 108.4 cents / lb, the significant reductions. Trading volume is at medium level.
The price of coffee beans in the Central Highlands provinces decreased slightly from 0 to 100 VND, down to fluctuating in the frame 31,500 – 32,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,433 USD / ton, FOB – HCM, with a difference plus 100 – 120 USD / ton in term of March in London.
Reais copper fell 0.64%, to $ 1 = 5.6310 Reais due to concerns that public spending exceeded the ceiling and the Central Bank of Brazil (BC) could still cut interest rates in the future, if there is no the school is even tougher on fiscal matters. Weakness in Reais copper dragged down most of the prices on agro-commodity markets, with Brazil being the leading producer.
Meanwhile, the market continued to disappoint over the announcement that the new funding package was not released yesterday with possibly lower levels of expectation. US stocks continued to decline, USDX rose again, most speculators withdrew to stand outside, causing the purchasing power on both futures markets to slow down, not creating new surprises as it declined. guess, even though the previous day had a fairly strong rally.
A weather forecast report released from Brazil said that this weekend and early next week will see significant rainfall across the states of Minas Gerais, Espirito Santo and Bahia, while the rest of the states have only scattered showers. . This alleviates the drought concerns caused by La Nina weather phenomenon in the coffee growing regions of southeastern Brazil and also contributes to the early reversal of Arabica coffee prices.
English (giacaphe.com)
