The shift in speculative capital flows before the prospect of raising the basic USD interest rate caused the price of coffee futures to reverse and drop…
Robusta chart London May 2022 session on April 6, 2022
Ending the session, the price of Robusta coffee on ICE Europe – London dropped for the fourth consecutive session. The May spot term decreased by 24 USD to 2,093 USD/ton and the July delivery term decreased by 20 USD to 2,090 USD/ton, significant reductions. Trading volume remain average.
Similarly, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. The May spot futures fell 3.70 cents to 227.60 cents/lb and the July delivery futures fell 3.65 cents to 227.60 cents/lb, significant declines. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 40,500 to 41,000 VND/kg.
The price of coffee on the two exchanges dropped under the pressure of raising the basic USD interest rate to prevent excessive inflation, while the price of gold and crude oil prices rebounded to attract speculative capital flows to move the market to prevent excess inflation. short-term profits.
U.S. Federal Reserve (commonly known as the Fed) released the minutes of its March meeting showing it will cut $95 billion in its balance sheet and pointing to the possibility of an additional 0.5% interest rate hike in subsequent meetings to combat inflation. This will cause the speculative capital flow to fluctuate unpredictably in the near future and the increase in USDX has prevented the purchasing power of goods in general..
The General Statistics Office of Vietnam estimated that coffee exports in the first three months of this year had reached 541,000 tons, up 19.4% over the same period last year. While Brazil and Indonesia have also started harvesting new-season Robusta coffee, it has increased supply pressure on consumer markets that are already stagnant because of logistics problems and the war in Eastern Europe.
English (giacaphe.com)
