Coffee prices for long-term extension chains decreased, but the market still has concerns about a sharp decrease in the output of Brazil in the upcoming crop …
Robusta London Tuesday / 2021 chart session on January 12, 2021
At the end of the session, Robusta coffee prices on ICE Europe – London dropped for the seventh consecutive session. Futures for delivery in March decreased by 13 USD, down to 1,302 USD / ton and futures for May delivery decreased by 14 USD, to 1,312 USD / ton, the significant decreases. Trading volume above average.
Similarly, Arabica coffee prices on ICE US – New York floor decreased. Futures for delivery in March decreased by 0.05 cents, down 121.4 cents / lb and for May futures decreased by 0.1 cent, to 123.45 cents / lb, the declines very slightly. Trading volume very high above average.
The price of green coffee in the Central Highlands provinces decreased by 200-300 VND, down to fluctuating in the frame 31,100 – 31,500 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,412 USD / ton, FOB – HCM, with the difference plus 80-100 USD / ton in term of May in London.
Reais copper surged 3.28%, to $ 1 = 5,3220 Reais, the strongest gain since June 8, 2018, following the pumping of money by the Bank of Brazil (BC), due to fears of uncertainties. risk stabilization in US politics and the increase in the number of covid-19 infections globally, while some unexpected efficacy rates have been reported.
Although US stocks recovered at the end of the session because speculators often chose to increase profits in the face of the risks, volatility of the world economy and the rebound of Reais caused the Brazilian to decrease selling, but Coffee futures prices continued to decline as the latest report of the Foreign Agriculture Division (FAS) of the US Department of Agriculture (USDA) revised down the forecast for global coffee supply for crop year 2020/2021. 0.34% to 175.5 million bags. However, the FAS also forecasts global consumption this season is estimated at 165.4 million bags. This has motivated “Speculative bear” back to strong net selling, while the drought concern in Brazil seems to disappear because major growing areas are already in the rainy season.
According to analysts, although coffee prices continued to decline on both futures, the closing price was still higher than the low of the first session of the previous week. This, coupled with declining trading volume, indicates caution “Speculative bear” and therefore, it is expected that coffee futures prices will soon recover as the market still has concerns about a sharp drop in Brazil’s upcoming harvest.
English (giacaphe.com)
