Global stocks plunged, red covered most commodity markets, investors withdrew capital to seek shelter … as more and more countries announced the re-establishment of social gap measures due to outbreaks. the second covid-19 pandemic.
Robusta London T1 / 2021 chart session on October 28, 2020
Ending the session, Robusta coffee prices on the ICE Europe – London floor adjusted to decrease. January spot futures fell 4 USD, down to 1,347 USD / ton and futures for March delivery decreased 2 USD, to 1,355 USD / ton, the slight decrease. Trading volume maintained at an average level.
Similarly, Arabica coffee prices on the ICE US – New York floor followed a downtrend. Futures for December delivery fell 1.95 cents, down 105 cents / lb and futures for March delivery fell 1.85 cents, to 107.7 cents / lb, the decline is very significant. Trading volume is above average.
The price of coffee beans in the Central Highlands provinces decreased by 100 VND, down fluctuating in the frame of 32,300 – 32,800 VND / kg.
Export Robusta coffee price type 2, 5% broken black, stood at 1,475 USD / ton, FOB – HCM, with the difference plus 100 – 120 USD / ton in term of March in London.
Reais copper plummeted 1.44%, to $ 1 = 5.7650 Reais continued to hit its lowest level in almost half a year due to risk concerns from the second outbreak of covid-19 epidemic, leading many countries to must declare the re-establishment of social gap measures, increasing volatility related to the economic recovery of not only the Eurozone but also the global.
The price of coffee on two floors decreased according to the stock and commodity markets in general, before the fear of the world economic recession following the covid-19 pandemic and this time there is a risk “Much worse than speculation”.
Brazil is already in the rainy season, and dry weather is no longer a major concern. While the Reais exchange rate dropped too deeply, stimulating Brazilians to still sell strongly. It is very difficult for world coffee prices to recover under selling pressure “do not hesitate” of the world’s largest producer.
The aftermath of the storm No. 9 is hard to overcome, storm number 10 has entered the East Sea and beyond… (!). Coffee farmers in the Central Highlands of Vietnam continue to face difficulties due to the La Nina weather phenomenon lasting throughout the harvest season this year.
A coffee garden in the Central Highlands was flooded by hurricane Molave (typhoon No. 9).
English (giacaphe.com)
