Although Conab forecasts the upcoming crop to drop more than 30%, there is no strong backlash given the previously expected market.
Robusta London Tuesday / 2021 chart session on January 22, 2021
Ending the last session of the week, Robusta coffee prices on ICE Europe – London dropped for the third consecutive session. Futures for immediate delivery in March decreased by 13 USD, down to 1,310 USD / ton and futures for delivery in May also dropped by 13 USD, to 1,322 USD / ton, the decreases were very significant. Trading volume above average.
Similarly, Arabica coffee prices on the ICE US – New York floor reversed and fell again. Futures for March delivery fell 2.4 cents, to 124.05 cents / lb and May futures fell 2.3 cents, to 126.2 cents / lb, the declines very significantly. Trading volume above average.
The price of coffee beans in the Central Highlands provinces decreased by 200-300 VND, down to fluctuate in the frame 31,200 – 31,600 VND / kg.
Export Robusta coffee price grade 2, 5% broken black, stood at 1,402 USD / ton, FOB – HCM, with the difference plus 70-80 USD / ton in term of May in London.
Reais copper plummeted 2.12%, to $ 1 = 5,4770 Reais due to fears of an escalating epidemic in Europe and Asia and uncertainties associated with the global economic recovery. as US stocks continued to recover, especially technology stocks, pushed most commodity markets back down.
Despite Conab’s latest report, it is expected that Brazilian production in this year’s crop will decrease by more than 30% due to drought and by the year it is cyclical. “Two years one”, met opposition from the coffee growers’ associations in many localities when they thought that the Arabica coffee crop could be halved.
However, according to observers, it is still too early to conclude anything, while the forecast of Conab’s crop is not too different from the survey figures of many international traders as well as domestic. Most notably, the inventory report managed by ICE is still growing strongly, new sources of goods from all over the world continue to flow to warehouses in the US and Europe. The fear of tight supply due to epidemics and tightness of shipping means is almost gone. At this point, doing business in the derivative coffee markets was an opportunity “Speculative bear” It is expected that more countries will increase economic stimulus measures to prevent recession due to the escalating Covid-19 pandemic.
The pressure of hedge sales for new products from Vietnam is not small, but the market also noted that there was no phenomenon of farmers selling massively as usual to have money to spend on shopping for the upcoming Traditional New Year. .
Editorial board noted: Newsletters on the page giacaphe.com are allowed to quote. However, in order to avoid unfortunate professional mistakes when editing, please contact us via email nguyenthinh@giacaphe.com for assistance.
English (giacaphe.com)
