Frustration about the new funding package not reaching agreement despite too many statements, while the upcoming US presidential election day is nearing and the report of the increasing number of covid-19 infections has made the activity of most markets are sluggish.
Robusta London T11 / 2020 chart session on October 21, 2020
Ending the session, Robusta coffee prices on ICE Europe – London continued to decline. November spot futures dropped another 15 USD, down 1,250 USD / ton, January delivery term dropped another 10 USD, to 1,279 USD / ton and March delivery term dropped by 9 USD, to 1,289 USD / ton. the reduction is very significant. Trading volume is above average.
Similarly, Arabica coffee prices on the ICE US – New York floor extended the chain to the sixth session. Futures for December delivery decreased 0.75 cents, down 104.15 cents / lb and futures for March delivery fell 0.8 cents, to 107 cents / lb, the significant reductions. Trading volume is above average.
The price of coffee beans in the Central Highlands provinces decreased by 200 VND, down fluctuating in the frame 31,100 – 31,600 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,409 USD / ton, FOB – HCM, with a difference plus 100 – 120 USD / ton in term of March in London.
The Brazilian Reais Copper decreased slightly by 0.1%, down to 1 USD = 5,6160 Reais despite the continuous statements of the two sides when the new funding package was not yet agreed upon. USDX volatility and unsuccessful negotiations have caused strong volatility in the foreign exchange markets, making agricultural commodities at a disadvantage as speculation continues to transfer capital to safe assets. and pulled back the price of gold beyond 1900.
Two-floor coffee prices have recovered from the beginning of the session but could not keep the increase in afternoon trade, often called the US session. Prices have faded away by commodity in general due to the new financing package there’s nothing to be sure of when the self-determined day has passed.
Meanwhile, Covid-19 broke out again across Europe, causing many markets to re-establish social gap measures with high levels of increase and progress. Brexit no deal seemed certain, even though the head of the EU negotiating team suggested a deal still within reach.
When the Reais Brasil copper exchange rate continued to weaken, world coffee prices were hard to stand, while speculative capital flows were not abundant and derivative coffee markets could not profit in the short term.
English (giacaphe.com)
