Unfavorable weather conditions cause fluctuations in coffee production and prices
Agriculture news about 14 hours ago 0 No comments
..Due to the influence of Typhoon Linfa (Typhoon 6) and heavy continuous rains and floods in recent days in the Central Region and Central Highlands, coffee fruits did not have a chance to ripen as in years with normal weather. before.
..Heavy rains in the Central and Central Highlands regions are signals that investors and coffee traders should pay attention to. Job: VNA
..“For a dozen days, many coffee zones in Dak Lak province and the Central Highlands have experienced excessive rain and lack of sunlight, some of the fruit on the tree is still 'white' and unripe due to less sunlight,” said Nguyen Tien Dung, head of coffee department .organic coffee is owned by Simexco Daklak.The coffee is not yet ripe, production has suffered, but coffee prices have plummeted from the beginning of September 2020 to the present at the Robusta derivatives market in London, where Vietnamese coffee traders often use them for reference. ...
..coffee prices occasionally tumbled to their lowest level in more than 11 weeks in the past week, when they bottomed out at $ 1,228 per tonne in November 2020 deals on London Robusta. ..over the last month, the closing price of London Robusta derivatives fell by $ 156 per tonne at the end of 9-10 session, to $ 1,260 per tonne (up from $ 1,416 per tonne earlier.).
..Adverse weather news for global coffee production with the 2020-2021 crop has only just begun to appear in the last 2 weeks and it doesn't seem to change consumer sentiment.
..the US Weather Forecast Center last week reported that the La Nina extreme weather event will occur in the Asia-Pacific region, causing some coffee producing countries to experience flooding such as Colombia, Indonesia, Peru ... including Vietnam, while like Brazil andEast Africa will experience severe drought.This is in line with the forecast of the coffee trader Marex Spectron (UK) that by 2021 Brazilian coffee may lose a large crop due to a "severe" drought, not just the coffee tree. The Arabica of the country falls into the "lost year" of a two-year cycle.
..“Even in the new season, the product is still unavailable due to heavy rain. Only worry about the La Nina event extending the rainy days until December 2020, when this extreme weather event occurs. ..assuming that prices in London are high, farmers will still not be able to sell because ... there is nowhere to sell, ”explained Mr Dang of Simexco Daklak.
..meanwhile, some exporters are reluctant to sign a new sales agreement because it is difficult to predict when to buy coffee materials, and at the same time, at such a low price, gardeners may not want to sell sooner.
..analysts believe coffee prices are under strong pressure due to news that Brazil is having a good season, Vietnam is about to reap a new crop, but the consumption channel is "congested" due to the threat of the Covid-19 pandemic. suspended. ..It's worth noting that the Covid-19 epidemic is gaining traction again in some coffee consumption and production markets such as the United States, Europe, India, Brazil, Mexico and Peru.
..Brazil's coffee production in 2020 has just been harvested, the USDA estimates 67.9 million bags (bags = 60 kg), of which Robusta accounts for 20.1 million bags. The USDA also predicts that Vietnam's coffee production will reach 30.2 million bags. ..only two leading coffee producing countries account for more than 50% of world production.
On the last two days of last week, coffee prices on two derivatives trading floors, Robusta London and Arabica New York, have been trying to recover from falling to lows since the last 10 weeks. ..a market analyst in Ho Chi Minh City said the coffee market is starting to digest information about extreme weather in La Nina.
..Heavy rainfall in the central and central highlands of Vietnam and low below average rainfall for many years in Brazil are signals that investors and coffee traders should look out for. ..“This information will cause the prices of coffee floors to fluctuate greatly in each session due to weather fluctuations,” the analyst said.
Traders tacitly determined that in such unfavorable weather, it would be difficult for prices to bottom out at $ 1,228 per tonne on October 8, 2020
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