The world coffee futures market continues to follow the weather news in the main coffee regions in southern Brazil…
Robusta chart London July 2022 session on June 22, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to increase. Futures for spot delivery in July increased by 10 USD, to 2,097 USD/ton and for September delivery increased by 12 USD, to 2,113 USD/ton, significant increases. Trading volume remain above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. September spot futures added 4.05 cents to 236.40 cents/lb and December futures added 3.85 cents to 234.85 cents/lb, strong gains. Trading volume below average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, fluctuated in the range of 41,200 – 41,700 VND/kg.
Coffee futures prices continued to rise amid concerns about drought in Minas Gerais, Brazil’s main Arabica coffee growing state. (re-read yesterday’s coffee market news June 21, 2022).
The Fed Chairman yesterday announced that he would vigorously apply necessary measures to curb inflation and raise the basic interest rate will happen at upcoming meetings. This has caused USDX to weaken again as the prospect of tightening the monetary cycle in the US and other developed economies has heightened risk aversion.
According to observers, a large amount of Arabica coffee stored in European Antwerp warehouses being moved to New York indicates a temporary short supply, while the main supply comes from the production of high-quality wet-processed Arabica. Mexico – Central America seems to have been exhausted, leaving ICE – New York certified inventories currently hovering at less than 1 million bags. While the coffee business this period is often considered as “weather business”, There are rumors that Brazil’s dry weather is likely to cause harmful winter frosts that will make New York coffee prices fluctuate unpredictably.
English (giacaphe.com)
