Coffee prices return to the uptrend (August 19, 2020)

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Coffee prices return to the uptrend (August 19, 2020)

29/06/2020

Coffee prices continue to fluctuate unexpectedly when gold prices have surpassed USD 2,000 / oz and the greenback continues to weaken due to the possibility of a temporary standoff in the Sino-US trade negotiation.

Robusta London T9 / 2020 chart session on August 18, 2020

At the end of the session, Robusta coffee prices on ICE Europe - London rose again. Futures for immediate delivery in September increased 30 USD, to 1,470 USD / ton and futures for November delivery increased 18 USD, to 1,396 USD / ton, the very significant increases. Trading volume is above average. The inverse price structure widens the gap.

Similarly, Arabica coffee prices on the ICE US - New York floor continued to rise. Futures for September delivery increased 3.75 cents, to 119.3 cents / lb and futures for December delivery increased by 3.6 cents, to 121.05 cents / lb, the increase. Trading volume is very high above average.

The price of coffee beans in the Central Highlands provinces increased by 200-300 VND, up fluctuating in the frame of 33,000 - 33,400 VND / kg.

Export Robusta coffee price grade 2, 5% broken black, stood at 1,516 USD / ton, FOB - HCM, with the difference plus 100 - 120 USD / ton in term of November in London.

Reais copper rose 0.45%, to $ 1 = 5.4710 Reais after the confirmation of Economy Minister Paulo Guedes will work closely with the incumbent President to revive the Brazilian economy. Meanwhile, US President D. Trump confirmed that he cannot discuss trade with China at this time, America needs to focus on pandemic control and the emergency bailout package will be approved with a subsidy agreement. lower level.

Coffee prices continued to rise on both exchanges due to the expiration of the September option contract is not too surprising. But the speculative net buying which has increased excessively in the current context is a surprise.

It can be confirmed that Brazil has completed the harvest of the new crop this year according to the forecast of Safras & Mercados about 68 million bags and they have sold nearly 60% of the output, mainly by the method of forward delivery to traditional customers, in when the Reais copper was still fluctuating at low level, they continued to support their selling.

It should be noted that the US Department of Agriculture (USDA) has forecast a coffee crop year 2019/2020 with an excess of 5 million bags, while the International Coffee Organization (ICO) has revised its forecast for a shortage. 486,000 bags.

Mr. Van (giacaphe.com)

ARO BAO KHANH COMPANY LIMITED
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