Although the expiration of the November option contract in London has supported the Robusta coffee price increase, but the consecutive decline of New York also makes investors need to be more cautious when Arabica coffee prices become too cheap.
Robusta London chart 11/2020 session on October 19, 2020
Ending the first session of the week, Robusta coffee prices on ICE Europe – London rose for the fourth consecutive session. November spot futures increased by 7 USD, to 1,280 USD / ton, January futures increased by 8 USD, to 1,305 USD / ton and futures for March delivery increased by 5 USD, to 1,311 USD / ton. slight increase. Trading volume is above average.
In contrast, Arabica coffee prices on the ICE US – New York floor continued to decline for the fourth session. Futures for December delivery fell 1.2 cents, down 106.05 cents / lb and March futures dropped 1.05 cents more, to 108.95 cents / lb, a significant decrease. Trading volume is above average.
The price of coffee beans in the Central Highlands provinces increased by 100-200 VND, up to fluctuate in the frame 31,500 – 32,000 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,431 USD / ton, FOB – HCM, with a difference plus 100 – 120 USD / ton in term of March in London.
Reais copper rose 0.67%, up at $ 1 = 5.6070 Reais after a positive correction in the forex market and USDX fell again amid optimism with the possibility of a new funding package. before the presidential election, according to the statement of the Vice Chairman of the Democratic House of Representatives. However, the market is still very skeptical about a number of consecutive conflicting statements recorded recently and said “Should not expect” because “Too fragile”.
Arabica coffee prices in New York continued to drift with US stocks in the first session of the week, despite more information about rainy weather at the Brazilian coffee belt because “Rain is too late”.
On the contrary, the news of heavy rain and flood in Vietnam combined with the expiration of the November option contract on London floor has supported Robusta coffee prices to increase continuously. However, the market also noted that short-term speculation still held a lot of net buying position, so the liquidation was not as strong as the previous periods.
Although coffee prices on the London floor increased continuously, but the New York floor fell continuously, investors should be more cautious when the market is about to end the November option contract and proceed to the first announcement date (FND) on. this weekend.
English (giacaphe.com)
