The Fed announced to raise the basic USD interest rate by 0.75%, to 1.5-1.75 percent per year, the highest level since 1994 and said it would increase the same in the next month…
Robusta chart London July 2022 session on 15/06/2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for spot delivery in July increased by 9 USD, to 2,046 USD/ton and for September delivery increased by 2 USD, to 2,055 USD/ton, slight increases. Trading volume quite tall above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued the recovery. July spot futures added 1.55 cents to 228.50 cents/lb and September futures added 1.60 cents to 228.50 cents/lb, significant gains. Trading volume quite above average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 40,100 to 40,700 VND/kg.
Coffee futures prices both recovered slightly in the mood of waiting, looking forward to news about the results of the monetary policy meeting of the Government. US Federal Reserve (FED). However, the market has speculated that the Fed may “mild” in raising the basic USD interest rate at this meeting in order not to shock the market.
As a result, the Fed decided to increase the basic USD interest rate by 0.75%, to 1.5-1.75 %/year, the largest level since 1994 and also said it would increase the same rate in the future. Next month, while the market speculated the possibility that the Fed could increase as much as 1%, after reporting CPI in May increased to 8.6%, the highest level in more than 40 years. Note that this is a very significant effort of the Fed in the intense battle to control inflation.
Meanwhile, the meeting of Monetary Policy Committee (Copom) Brazil is expected to raise the basic interest rate of the Reais by 0.5 – 0.75% and will announce it at the end of the day, after the market close. This will spur Brazilians to sell heavily the new crop currently harvested, while the coffee futures markets are also nearing the expiration of the July options contract and the European-American Catholic countries will day off Feast of the Body and Blood of the Lord today.
Note, European Central Bank (ECB) also convened an emergency session to discuss the current market situation.
The coffee futures markets are facing unpredictable fluctuations, while the first announcement date (FND) of the New York Arabica market, June 22, is also near.
English (giacaphe.com)
