Vietnam – after historic week over week extended gains, week 43 went a topsy turvy session wrapping the October month at level 88000 VND/kg with few shippers actively covering. By mid-week, latter went back into sideline, displaying another dull market scenario ending month.
Overall, October month displayed almost 8% increased from its start off, reaching highs of almost 9% from September month this year.
Week 44, beginning week of November pricing level of raw material were seen from 88000-87000 VND/kg with few sellers trying to bid as low as possible but then each time demand arises, market stood firm on its level.
New Crop 2022 – would likely to pose a challenge to farmers with a harvest delay of about two (2) months due to shortage of manpower attributed to the delay of coffee harvest period this coming Dec/January.
Indonesia – firm in its stance until today with indicative price that is about $4400 FOB for Lampung.
Muntok White boosted at level $7100-7300 FOB an alleged lacking supply from farmers’ side with almost remaining volumes suspected to be with big speculators. Furthermore, rumors circulating that next year crop will again drop with at least 30% compared to this year.
Brazil – Week 43 - while Northern Crop harvest is ongoing, demand continues to advance in good volume with price ranging from $4100-4300 FOB from Espiritu Santo seen with raw material at supportive level of R$19-19.50/kg. On the other hand, from Para, pricing level is now at premium of R$21.50/kg level.
Our Take-Away View
Reaching week 44, with Vietnam market cooling down, demand slows down for Brazil with offers remaining firm.
Market remains generally strong despite moments of softness. In fact, it is times like this that should be seen as a potential window of buying opportunity with current supply and new crop expectations that are both not too promising.
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