Many major central banks around the world also simultaneously raised monetary interest rates this time due to concerns about the negative impact of global inflation, which has pushed the world economy into a recession more severe than anticipated.
Robusta chart London July 2022 week 24 (from 13/06/2022 – 18/06/2022)
For the whole week 24, London market had 3 decreasing sessions and 2 gaining sessions. The price of Robusta coffee for July delivery fell by all 12 USD, or 0.58 %, to 2,165 USD/ton and for September delivery fell all 16 USD, or 0.76%, to 2,079 USD. /ton, slight reductions. Trading volume on average.
On the contrary, the New York market had 3 increasing sessions and 2 decreasing sessions. The price of Arabica coffee for July delivery fell all of 1.25 cents, or 0.55%, to 227.65 cents/lb and for September delivery fell all of 1.40 cents, or 0. 61 percent, to 227.40 cents/lb, slight declines. Trading volume above average.
The price of green coffee beans in the Central Highlands market decreased by 00-100 dong, down to range from 40,700 to 41,300 dong/kg.
The highlight of the week was the adjustment of monetary base interest rates of major economies in the world. First of all, the USD basic interest rate should be raised by 0.75% to 1.5 – 1.75%/year. This is the highest interest rate hike of Federal Open Market Committee (FOMC) USA after the report that inflation exceeded a record, showing the determination of the Fed officials to push back inflation not only in the US. Same time, Monetary Policy Committee (Copom) – Brazil also raised the basic interest rate of the Reais by 0.5% to 13.25%/year, which also contributed to strengthening the prices of Brazil’s strong export agricultural products, preventing them from selling strongly when the reais weakened. back to the pressure of the exchange rate. Besides, there is also the adjustment to increase the basic interest rate by a series of major central banks in the world to join hands to prevent global inflation.
The New York Arabica market has completed the July futures options contract, will enter the first announcement date (FND), June 22 in the middle of next week, and the London Robusta market will follow after, which will open. a new stage of business that is implicitly recognized by the market as one “weather business” When investors usually focus on weather news, the winter frost in Brazil will have a strong impact on the world coffee futures markets, while the Brazilians will sell strongly the new crop in 2019. be cyclical “two years one” which they are currently ramping up harvesting.
However, speculators are still standing outside to wait and see the effect of this and upcoming rate hikes to determine the trend more clearly, but it is also necessary to confirm that the market usually On the side of those who are sharp, those who are slow often face many losses.
English (giacaphe.com)
