US President vowed not to take any action “fight back” What happened has relieved speculators and most commodity markets have returned to positive…
Robusta chart London T5/2022 session on February 22, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to recover. Futures for delivery in May increased by 26 USD, to 2,260 USD/ton and for July delivery increased by 22 USD, to 2,238 USD/ton, significant increases. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. Spot futures in May rose 1.25 cents to 247.25 cents/lb and futures for July delivery rose 1.30 cents to 246 cents/lb, significant gains. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces increased by 400-500 VND, fluctuated in the range of 40,800 – 41,500 VND/kg.
The price of coffee futures dropped at the beginning of the session when the Eurasian markets felt the negative impact of the Ukraine crisis and the USDX weakened again, leading to commodity prices in general. However, when the US President said that only sanctions were applied without any action “fight back” What happened caused the market to react positively, the prices of most commodities reversed to rise again, while the US stocks dropped simultaneously, speculative capital flows were withdrawn back to the commodity and other markets. Emerging currencies also benefit.
Coffee prices on both futures exchanges have achieved a profit of the day that is close to the previous loss due to concerns about supply shortage in the short and medium term. (see price chart). Even though the position report shows that speculators are still net buying increases the likelihood of long-term liquidation pressure.
English (giacaphe.com)
