The rise in the Robusta coffee market showed signs of slowing down when the inventory report tracked by the London floor ended the chain of “rare” record reductions.
Robusta London chart 11/2020 week 36 (from August 31, 2020 – September 5, 2020)
For the whole week 36, London market had 2 gaining sessions and 2 decreasing sessions. Robusta coffee futures for immediate delivery in November increased all 15 USD, ie increased 1.05%, to 1,444 USD / ton and futures for delivery in January 2021 increased all 18 USD, ie up 1.25%, up 1,454 USD / ton, significant increases. Trading volume is above average.
Meanwhile, New York market had 4 gaining sessions and 1 decreasing session. Arabica coffee futures for immediate delivery in December increased all 7.65 cents, or 6.05%, to 134 cents / lb and futures for March delivery increased all 7.2 cents, ie increased by 5, 65%, to 134.55 cents / lb, very strong increases. Trading volume is quite high above average.
The price of coffee beans in the Central Highlands market increased by 100-200 VND, fluctuating in the frame of 33,400 – 33,900 VND / kg.
Coffee futures prices continued to rise when the certified inventory report of the two floors, especially the New York floor, still has not had a significant improvement. Meanwhile, the National Monetary Council (CMN) of Brazil approved Funcafe to reduce interest rates on credit to support farmers in no hurry to sell goods at low prices.
The International Coffee Organization (ICO) reported that global exports in July reached 10.61 million bags of coffee of all kinds, down nearly 11% from the same period last year. The reason for the decrease is the spread of the disease, so the producing countries do not promote export, even though the prices have improved somewhat compared to the previous three months.
At the same time, the ICO adjusted its forecast for a global coffee shortage in the current coffee season to a surplus of 952,000 bags, due to an increase in Brazil’s crop output in 2019.
The Indonesian Trade Authority reported August coffee exports, mainly Robusta coffee, were only 285,068 bags, down 8.48% year-on-year. However, the cumulative export of coffee in the first 11 months of the current crop year 2019/2020 totaled 2,725,341 bags, an increase of 410,076 bags, or an increase of 17.71% over the same period of the previous crop year.
The latest Trader Commitment (CFTC) report from New York’s Arabica coffee market found that as of Tuesday, August 25, the non-commercial speculation division increased their net buying position by 34. , 44% registered net buying in 22,218 lots, or 6,298,705 bags and was more likely to have increased after a period of active trade 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 increased their net buying position by 67.64% to subscribe. net was at 9,279 lots, or 1,546,500 bags, and most likely has increased after a period of active trade since then.
As of Monday, August 31st, inventories of Robusta coffee certified and tracked by the London floor increased 690 tons, or 0.63% compared to the previous trading week, to register at 109,770 tons ( equivalent to 1,829,500 bags, 60 kg bags), recorded the first week of increase after a record long chain of declines.
Notification:
Monday, September 7, New York market has a US Labor Day holiday, closed all day without any transactions. London markets are open for trading as usual.
English (giacaphe.com)
