The pressure of the option contract in November continued to support the Robusta coffee price increase, while the sharp decline in the Reais Brasil exchange rate was the pressure that made Arabica coffee prices weak again.
Robusta London chart November 2020, session October 16, 2020
At the end of the last session of the week, Robusta coffee prices on ICE Europe – London increased for the third consecutive session. November spot futures increased by 9 USD, to 1,273 USD / ton, January futures increased by 11 USD, to 1,297 USD / ton and for March delivery also increased by 11 USD, to 1,306 USD / ton. significant increases. Trading volume is quite high above average.
In contrast, Arabica coffee prices on the ICE US – New York floor continued to decline for the third session. Futures for immediate delivery in December decreased by 2.25 cents, down 107.25 cents / lb and futures for March delivery decreased by 2.1 cents, to 110 cents / lb, the decline was quite strong. Trading volume is at medium level.
The price of coffee beans in the Central Highlands provinces increased by 100-200 VND, up to fluctuate in the framework of 31,300 – 31,800 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,426 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of March in London.
Reais copper fell another 0.33%, to $ 1 = 5,6450 Reais, ending a week of 2.13% decline, amid rising covid-19 epidemic and USDX continuing to strengthen as the pack New funding shows no indication of being approved.
London Robusta coffee prices continue to be supported by November option expiration. Investors expect the price to surpass $ 1300 to determine the short term uptrend.
In contrast, Arabica coffee prices in New York continued to decline according to the Brazilian Reais. The weaker the Reais, the stronger the selling power from the Brazilian farmers, as they would get more domestic currency.
According to observers, coffee deliveries are congested at agricultural export ports in Brazil due to lack of shipping containers. But this is not really a concern of international traders because coffee is a raw material for long-term production and is traded mainly by the mode of forward delivery.
English (giacaphe.com)
