Not only the expiration of the November option contract in London has supported the Robusta coffee price increase, but excessive stormy weather also hinders the harvest of the new crop by the leading producer. worry about the market.
Robusta London chart November 2020, session October 15, 2020
At the end of the session, Robusta coffee prices on ICE Europe – London continued to rise. November spot futures increased by 14 USD, to 1,264 USD / ton, January futures increased by 10 USD, to 1,286 USD / ton and March futures increased by 9 USD, to 1,295 USD / ton. significant increase. Trading volume fell above average.
In contrast, Arabica coffee prices on the ICE US – New York floor continued to decrease. Futures for immediate delivery in December decreased by 0.1 cent, down to 109.5 cents / lb and futures for March delivery also decreased by 0.1 cent, to 112.1 cents / lb, the declines very slightly. Trading volume is very high above average.
The price of coffee beans in the Central Highlands provinces increased by 200-300 VND, up fluctuating in the frame 31,200 – 31,600 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,415 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of March in London.
Reais copper fell another 0.41%, to $ 1 = 5.6260 Reais, amid an increase in covid-19 epidemic that forced many countries in Europe to expand social distancing measures that hinder The recovery of this large economy, besides the caution of foreign capital investors, when the new US financing package continues to stagnate.
Robusta coffee prices continue to rise in the short term, when the expiration of the November option contract in London is coming.
In contrast, the price of Arabica coffee in New York continued to weaken in the face of selling pressure from Brazil once the Reais exchange rate fell was almost inevitable, despite concerns about coffee output of the annual crop. coming will not be as expected.
The La Nina weather phenomenon that will cause heavy rains for coffee producing countries on the Pacific Rim is also a grave concern for Vietnam, the world’s largest Robusta producer. This weather phenomenon, combined with the early northeast monsoon, will cause flooding, widespread inundation and slow down the harvest of the new crop in the Central Highlands coffee area, which is accompanied by costs for the coffee harvest and drying will increase.
English (giacaphe.com)
