Coffee prices reversed to increase due to the slow harvest of the crop in Brazil and heightened risk concerns when many central banks will have to tighten monetary policy to prevent inflation…
Robusta chart London September 2022 session on June 29, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor recovered strongly. The September spot term increased by 32 USD, to 2,049 USD/ton and the November delivery term increased by 29 USD, to 2,044 USD/ton, very significant increases. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same trend of recovery. September spot futures rose 10.50 cents to 228.25 cents/lb and December futures rose 9.70 cents to 225.35 cents/lb, very strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, up to range from 40,200 to 40,700 VND/kg.
Speaking at a conference of the European Central Bank (ECB), the President of the US Federal Reserve said that central banks simultaneously tightened monetary policies, which would increase the risk of a world economic recession but than let inflation increase, because there is no other way. This caused global financial markets to continue to fluctuate strongly because of heightened risk aversion to the pressure of an upcoming base rate hike.
Coffee futures prices reversed sharply higher after the report that Arabica inventories managed by ICE fell to a new 22-year low, shortly after the transfer of a very significant amount of coffee from warehouses in Europe to America to deliver to industrialists when the supply from the main manufacturers in Central – South America shows signs of exhaustion.
Meanwhile, the harvest of the new crop in Brazil has slowed down because the weather is not favorable for drying, farmers continue to stay out of the market, saying that this year’s crop has not met their initial expectations. but the business world also offered to buy at too low a price.
Follow consultant – analyst Safras & Mercado it is estimated that only 35% of total production has been harvested so far, much lower than the 40% in 2021 and the 5-year historical average in this period is 44%, due to uneven ripening of coffee cherries, shortage of seasonal workers and higher output than last year’s crop.
General Statistics Office of Vietnam estimated coffee exports in June will reach 2.41 million bags, up 13.30% over the same period last year. As a result, cumulative coffee exports for the first nine months of the current coffee year 2021/2022 will total 19.87 million bags, an increase of 7.35% year-on-year.
English (giacaphe.com)
