Risk aversion is heightened by the possibility that the Fed – the US will be strong in fighting inflation even though it will cause “suffering” for people and companies…
Robusta chart London T11/2022 session on August 26, 2022
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London continued to decline. The November spot term decreased by 33 USD, to 2,279 USD/ton and the term for delivery in January 2023 decreased by 34 USD to 2,260 USD/ton, the reductions were quite strong. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York reversed to decline. December spot futures fell 1.40 cents to 238.10 cents/lb and March 2023 futures fell 1.35 cents to 231.65 cents/lb, significant declines. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces decreased by 600-700 VND, to range from 48,200 to 48,800 VND/kg.
Coffee futures prices continued to decline as expected after a hot session due to concerns about supply shortages in the short and medium term. ICE’s coffee inventories continued to decline because futures prices lacked attractiveness and were not competitive enough with the outside market. Moreover, the cost for traders to bring coffee to the two floors for auction is currently quite expensive and expensive, so importers directly look to the supply to buy goods to reduce intermediary costs.
Speaking at Jackson Hole, the chairman of the US Federal Reserve (Fed) affirmed that he will strongly raise interest rates to bring inflation back to the target level even if it causes “suffering” for people and companies. However, the magnitude of this rate increase will depend on the economic indicators being reported. The heightened risk aversion sent US stocks and many commodities down, and speculative capital flowed back to haven assets.
English (giacaphe.com)
