Brazil has experienced extensive rains supporting coffee tree growth, while prolonged storms in Vietnam will delay harvest of new crops for several weeks.
Robusta London T1 / 2021 week 44 chart (October 26, 2020 – October 31, 2020)
For the whole week 44, London market had 3 gaining sessions and 2 decreasing sessions. Robusta coffee futures for delivery in January increased by $ 46, or up 3.52%, to $ 1,351 / ton and for March delivery also increased by $ 46, or up 3.50%, to 1,359. USD / ton, relatively strong increases. Trading volume is at medium level.
In contrast, New York market had 2 gaining sessions and 3 losing sessions. Arabica coffee futures for immediate delivery in December fell all 1.2 cents, or 1.14%, down to 104.4 cents / lb and futures for delivery in March decreased by all 1.55 cents, or 1, 43%, to 106.85 cents / lb, significant reductions. Trading volume is quite high above average.
The price of coffee beans in the Central Highlands market increased by 800 – 900 VND, up fluctuating in the frame of 32,500 – 32,900 VND / kg.
Arabica coffee prices fell again when there was a widespread rainfall in the main coffee growing regions of Brazil, while excessive public spending in the context of limited production and exports due to the covid-19 pandemic. weakening the Reais copper again. This has stimulated Brazilians to sell out strongly even though current prices in New York still have not attracted speculation. On the contrary, the contagious disease that caused the demand for home consumption to increase, while the leading producer was being continuously stormed by storms that slowed the new harvest this year, also contributing to support Robusta coffee prices at London.
The fact that the US government has not been able to launch a new funding package due to a deadlock in long-term negotiations has made the US stock market continuously flutter according to statements, promises … has brought about concerns from the top. engine on general markets. Along with that, the US presidential election in the sprint period also made many people want to wait for the results, so most of them still stood outside. While more and more European and American markets have to re-establish social gap measures because the second covid-19 epidemic also contributes to the decline in the world economy again.
The latest Trader Commitment Report (CFTC) from the Arabica coffee market in New York shows that the non-commercial speculators have reduced their net buying position by 23.72%, during the trade week to Thursday. Three days 20/10, down registered to net buy at 15,488 lots, equivalent to 4,390,779 bags. This net long position is most likely to have continued to decline after a period of more negative trading 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 selling position by 25.47%, to registrations. net sold at 8,281 lots equivalent to 1,380,167 bags and most likely fell back again after a period of more positive trade since then.
As of Monday, October 26, stocks of Robusta coffee certified and tracked by the London floor have increased by 7,500 tons, or 6.28% over the previous commercial week, to register at 120,930. tons (equivalent to 2,015,500 bags, 60 kg bags).
English (giacaphe.com)
