USDX surges to new highs coupled with higher risk aversion has led speculators to continue to sell off commodities…
Robusta chart London July 2022 session on June 13, 2022
At the end of the first session of the week, the price of Robusta coffee on the ICE Europe – London floor continued the decrease in the sixth session. Futures for spot delivery in July decreased by 38 USD to 2,039 USD/ton and for September delivery decreased by 40 USD to 2,055 USD/ton, significant reductions. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. July spot futures fell another 5.55 cents, to 223.35 cents/lb and September futures fell another 5.35 cents to 223.45 cents/lb, very strong declines. Trading volume remained very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 700-800 VND, down to the range of 40,000-40,600 VND/kg.
The heightened risk aversion that pushed USDX to new highs sent emerging currencies depreciating leading to a widespread commodity sell-off. Arabica coffee prices in New York fell to a two-week low and Robusta in London fell to a monthly low. The reais fell sharply below the psychological threshold (5.0) has stimulated Brazilians to sell strongly the new crop currently being harvested, causing the price of coffee futures to fall further. Besides, there is the liquidation and adjustment of speculative positions before the expiry date of the July futures contract is approaching on both exchanges.
According to observers, the inflation crisis is likely to persist and exceed further, which has turned the USD into a haven and, as a result, suppressed purchasing power in general, ahead of the possibility that the Fed will “Eagle” has put most commodity markets at a riskier disadvantage.
. English (giacaphe.com)
