It is expected that Copom – Brazil will raise the basic interest rate of the Reais by 0.5%, to 13.25%/year, also helping to support the price increase…
Robusta chart London July 2022 session on June 16, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London increased strongly. Futures for spot delivery in July increased by 45 USD, to 2,091 USD/ton and for September delivery increased by 49 USD, to 2,104 USD/ton, very strong increases. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. July spot futures added 3.45 cents to 231.95 cents/lb and September futures added 3.30 cents to 231.80 cents/lb, fairly strong gains. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces increased by 800-900 VND, to range from 40,900 to 41,600 VND/kg.
Coffee futures prices continued to recover as USDX dropped again and the speech proved “rigid” of the Chairman of the Fed in controlling inflation in the US. Besides, there is also the support of a stronger Reais after Copom – Brazil decided to raise the basic interest rate by 0.5% to 13.25%/year. The US stock market rebounded strongly after the Fed’s signal that it would raise interest rates by 0.5 – 0.75% in the next policy meeting to commit to deflation.
Contributing to the volatility of the world financial markets, the Swiss National Bank (SNB) suddenly announced an increase in the basic interest rate by 0.5%, to 1.25%/year, the increase. First interest rate since 2007. Bank of England (BoE) is also expected to raise key interest rate by 0.25% to 1.25%/year, the fifth increase in a row, will be announced in this morning.
The price of coffee on the two futures floors continued to recover amid the caution of speculators with low trading volume. News that the main coffee growing regions in the south of Brazil lacked rain in the past week, while the Brazilian domestic market was closed due to yesterday’s Catholic feast of the Body and Blood of Christ, which prevented Brazilians from selling. New services also contribute to the price increase.
English (giacaphe.com)
