The markets in general are expecting a new vaccine against covid-19 to be released soon, actively supporting the global economy to recover when the new year is 2021 …
Robusta London T1 / 2021 week chart 51 (from December 14, 2020 – December 19, 2020)
For the whole week 51, London market had 3 gaining sessions and 2 decreasing sessions. Robusta coffee futures for immediate delivery in January increased all 27 USD, ie increased 2.02%, to 1,362 USD / ton and futures for delivery in March increased all 23 USD, ie up 1.69%, to 1,380 USD. / ton, very significant increases. Trading volume is at medium level.
Similarly, New York market also had 3 gaining sessions and 2 decreasing sessions. Arabica coffee futures for delivery in March increased all 3.65 cents, or 3.0%, to 125.25 cents / lb and futures for May delivery increased by 3.7 cents, or 3, 0%, to 127.1 cents / lb, the decent level. Trading volume is quite high above average.
The price of coffee beans in the Central Highlands market increased from 500 to 600 VND, up fluctuating in the frame of 32,600 – 33,100 VND / kg.
Two-floor coffee prices rebounded after Rabobank forecasts Brazil’s Arabica output in coffee year 2021/2022 will drop to 37.2 million bags due to drought and Vietnam Customs reports monthly exports. 11 only reached 83,730 tons of Robusta coffee, the lowest level in the past 3 years.
Meanwhile, the Brazilian agricultural supply and forecasting company (Conab) estimated that Arabica coffee output in 2020 increased by 2.3% to 63.1 million bags and Robusta coffee decreased by 4.7%. down at 14.3 million bags.
Traditionally, Conab’s reported figures have been underestimated by the market by an average of 8%.
However, the market has shown some positive signals as the covid-19 preventive vaccine begins to roll out and the possibility that a new US $ 900 billion funding package will be approved before this year’s Christmas.
It should also be noted that in the northern hemisphere, especially the EU countries and North America, because wet winter weather is a favorable condition for the covid-19 epidemic to have a strong outbreak again, will affect negative impact on most markets at the end of the year.
Weather forecast in Brazil this weekend and the beginning of next week will have widespread rain and so the fear of drought in the main coffee growing areas seems to no longer make sense.
English (giacaphe.com)
