The fear of large-scale drought will reduce Brazil’s coffee production in the next season, prompting market prices to rise.
Robusta London chart November 2020, session October 8, 2020
Ending the session, Robusta coffee prices on the ICE Europe – London floor adjusted to increase. November spot futures rose $ 5, to $ 1,251 / ton, January futures rose $ 5, up $ 1,271 / ton and March futures also increased by $ 5, to $ 1,286 / ton, increases light. Trading volume maintained above average.
Similarly, Arabica coffee prices on the ICE US – New York floor continued to rise. Futures for December delivery increased 0.65 cents, to 110.25 cents / lb and futures for March delivery rose 0.75 cents, to 112.55 cents / lb, the slight increase. Trading volume is above average.
The price of coffee beans in the Central Highlands provinces increased by 100 VND, up fluctuating in the frame 30,600 – 31,100 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,391 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of January in London.
Reais copper rose 0.6%, up at 1 USD = 5.5890 Reais, while there was no uncertainty about the economic stimulus package but the US stock market is still optimistic that it will be approved soon.
Robusta coffee prices have not kept up since the beginning of the session when the London market received many negative news, especially the outbreak of the second covid-19 epidemic that is aggravating in Europe, while the difficulties Intra-block copper persists, especially at risk Brexit No deal is growing.
Meanwhile, Arabica coffee prices also slowed down because the volume of coffee brought to the New York floor to register for certification was quite abundant and pressure before a long vacation in China also made investors reduce their purchasing power. Short-term.
According to observers, high temperatures and low humidity in all Arabica and Robusta producing regions of Brazil have raised concerns about a sharp drop in coffee output in the 2021/2022 crop. In particular, early blooming coffee flowers are likely to be completely damaged.
English (giacaphe.com)
