Reais copper’s depreciation pushed Brazil to sell strongly, while Robusta coffee price in London had support at the expiration of the November option contract and news of severe rain and flood in Vietnam.

Robusta London T11 / 2020 chart week 42 (October 12, 2020 – October 17, 2020)

For the whole week 42, London market had 3 gaining sessions and 2 decreasing sessions. Robusta coffee futures for immediate delivery in November increased all 13 USD, ie increased by 1.03%, to 1,273 USD / ton, futures for January delivery increased all 17 USD, ie increased by 1.33%, to 1,297 USD / ton and term delivery in March increased all 11 USD, ie up 0.85%, to 1,306 USD / ton, the significant increase. Trading volume is above average.

On the contrary, New York market had 1 gaining session and 4 losing sessions. Arabica coffee futures for immediate delivery in December fell all 4.3 cents, or 3.85%, down to 107.25 cents / lb and futures for March delivery fell all 3.8 cents, or 3, 34%, to 110 cents / lb, drastic declines. Trading volume is quite high above average.

The price of coffee beans in the Central Highlands market increased from 400 to 500 VND, up to fluctuate in the frame 31,300 – 31,800 VND / kg.

In this week, two-floor coffee prices continued to fluctuate in opposite directions, but in contrast, decreased in New York and increased in London. The main reason is that Reais Brasil fell back, while USDX strengthened because the new funding package seemed to really stand at a standstill before the US presidential election day in early November. While the second outbreak of covid-19 has put the world economy in danger of an unforeseen recession, more and more Eurozone countries announce a re-establishment of social gap in the context of Brexit no deal has become increasingly clear.

Robusta London coffee prices also have more information about rainstorms and prolonged flooding in Vietnam, although speculation in derivative markets is still concerned, continues to stand outside due to information. The suspended trial of the covid-19 preventative vaccine has made the market even more confused.

The latest Trader Commitment Report (CFTC) from New York’s Arabica coffee market shows that the non-commercial speculators have reduced their net buying position by 20.86%, for the trade week to Thursday. On October 6, down to register net buying in 20,298 lots, equivalent to 5,754,393 bags. This net long position has most likely been reduced further, following a period of mostly negative trade since then.

The latest CFTC report from Robusta coffee market in London shows that in the same trading week, short-term speculation of money management funds reduced their net buying position by 77.47%, to subscribe to buy. net at 3,053 lots, equivalent to 508,833 bags. This net long position is likely to have rebounded slightly after a period of mixed trade but has been somewhat positive since then.

As of Monday 12/10, Robusta coffee inventories certified and tracked by London floor have decreased by 240 tons, or 0.22% from the previous trading week, to registration at 108,240 tons. (equivalent to 1,804,000 bags, 60 kg bags).

English (giacaphe.com)