Investors continued to liquidate and switch positions on both futures exchanges right before the Fed meeting…
Robusta chart London 3/2022 session on January 24, 2022
At the end of the first session of the week, Robusta coffee prices on ICE Europe – London continued to decline. The March spot term decreased by 16 USD to 2,197 USD/ton and the May delivery term decreased by 13 USD to 2,166 USD/ton, significant reductions. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York dropped for the third consecutive session. The March spot futures fell another 4.95 cents to 232.95 cents/lb and the May delivery futures fell another 4.85 cents to 233.25 cents/lb, sharp declines. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 dong, to range from 39,200 to 39,700 dong/kg.
Stock exchanges and derivatives simultaneously dropped on speculation that the Fed will raise the basic USD interest rate and cut economic stimulus at a new policy meeting in 2 days from today. The inflows of speculative capital seeking shelter have caused USDX to bounce back and make commodities in general expensive.
Besides, there is also a sign of increased sales from farmers in the world’s first and second largest coffee producers.
BBT (giacaphe.com)
