Reais copper weakened again due to the strong spread of covid-19 in the country and slow implementation of vaccination, causing concerns about the slow recovery of the Brazilian economy.
Robusta London Tue / 2021 week 3 chart (January 18, 2021 – January 23, 2021)
For the whole week 3, London market had 1 increasing session and 4 decreasing sessions. Robusta coffee futures for delivery in March decreased by $ 43, or 3.18%, down to $ 1,310 / ton and for May delivery down all $ 41, or down 3.01%, to $ 1,322. / ton, relatively strong decreases. Trading volume is above average.
Similarly, New York market had 3 decreasing sessions and 1 gaining session. Arabica coffee futures for spot delivery in March decreased all 4.1 cents, or 3.2%, to 124.05 cents / lb and futures for May delivery fell all 4.05 cents, or 3, 13%, to 126.2 cents / lb, the reductions are also quite strong. Trading volume above average.
The price of coffee beans in the Central Highlands market decreased by 800 – 900 VND, down to fluctuate in the frame 31,200 – 31,600 VND / kg.
The price of coffee on two floors reversed and dropped again although the market still had concerns about the upcoming drop in Brazil’s supply, the latest was the report of the Agricultural Supply Supply Company and Forecast (Conab) of the Ministry. Brazilian Agriculture.
However, the market did not go as expected as coffee prices continued to weaken at the weekend due to fears that the global economy is still slowing down due to the escalating epidemic, the report shows the number of people infected with covid. -19 does not seem to have stopped leaving the economic recovery in many countries still delayed. During the measurement, implementation of vaccination was reported slow and some vaccines did not work as expected, especially with new variants of coronavirus.
The Coffee Exporters Association (Cecafé) in Brazil reported that coffee bean exports in December reached 3.91 million bags, up 41.77% year-on-year, of which coffee exports Arabica increased 46.32% to 3.53 million bags and exports of Robusta coffee increased by 10.06% to 380,669 bags. Generally in the first 6 months of the current coffee season 2020/2021 (from the first month of July to the end of December 2020), Brsil exported a total of 22.47 million bags, up 23.04% compared to the average. 5 years average same period. However, the market also began to show concern as it is expected that new crop stocks will be low as export volumes have consistently reached record levels in recent months, while Brazil is facing A new crop is coming where coffee production is also expected to be at a record low.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York showed that as of Tuesday, January 12, the non-commercial speculation division reduced their net buying position by 26, 67% down registered to net buy in 16,014 lots, equivalent to 4,539,898 bags. This net long position was most likely reduced further after the mixed trade but has been somewhat negative since then.
The latest CFTC report from Robusta coffee market in London shows that, by the same reporting period, short-term speculation of money management funds converted net long position to registered net sale at 7,173 lots. This equates to 1,195,500 bags. This net short position is most likely to have increased sharply after a period of mostly negative trade since then.
Inventory of Robusta coffee certified and tracked by London floor, as of Monday 18/01, has decreased 100 tons, or 0.07% from a week earlier, to registration at 141,870 tons ( 2,364,500 bags equivalent, 60 kg bags).
English (giacaphe.com)
