The support of the November options expiration date pushed London’s Robusta prices up sharply.
Robusta London T11 / 2020 chart session on October 14, 2020
At the end of the session, Robusta coffee prices on ICE Europe – London reversed and increased. November spot futures increased 27 USD, to 1,250 USD / ton, January futures increased 26 USD, to 1,276 USD / ton and March futures increased 23 USD, to 1,286 USD / ton, the increases are quite strong. Trading volume remained very high above average.
In contrast, Arabica coffee prices on the ICE US – New York floor reversed and decreased. Futures for December delivery fell 0.5 cents, to 109.6 cents / lb and futures for March delivery fell 0.4 cents, to 112.2 cents / lb, the levels down slightly. Trading volume fell to a moderate level.
The price of coffee beans in the Central Highlands provinces increased by 400-500 VND, up fluctuating in the frame of 30,900 – 31,400 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,406 USD / ton, FOB – HCM, with a difference plus 100 – 120 USD / ton in term of March in London.
Reais copper fell 0.39%, to $ 1 = 5.6030 Reais as investors continued to react to the forex market with the perception that the new funding package would not be approved by the US Congress before election day. the new president (November 3) and the experimental suspension of some covid-19 prophylactic vaccines have resulted in greater risk concerns.
Like most other derivatives markets, Robusta coffee prices in London also have support as November option expiration is near. Many investors need to liquidate, change positions, continue to bring the commercial volume of the contract delivered after the January 2021 period to higher than the November 2020 spot term.
Significant rainfall is expected over the next week for most of the major coffee growing regions in southern Brazil, with the exception of the northern state of Espírito Santo which will experience less rainfall.
Follow The Rio Times, Brazil’s agricultural exports are in crisis in sea transport. Recorded last month, there was a shortage of 80,000 arrival containers compared to 251,000 outgoing containers. Coffee deliveries at this time find it hard to find space to squeeze in, while Brazil accounts for 30% of the global coffee trade.
English (giacaphe.com)
