Inflation in the Eurozone is at an all-time high, which will prompt the European Central Bank (ECB) to strongly raise the basic interest rate at its policy meeting next week…
Robusta chart London T11/2022 session on August 31, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the falling chain to the fourth session. The November spot term decreased by 11 USD, to 2,250 USD/ton and the term for January delivery in January 2023 decreased by 7 USD to 2,238 USD/ton, slight decreases. Trading volume stay average.
Similarly, the price of Arabica coffee on the ICE US floor – New York tends to be mixed. While December spot futures rose 0.05 cents to 235.25 cents/lb, all futures fell. Specifically, the delivery term in March 2023 decreased by 0.20 cents to 228.60 cents/lb and the term for delivery in May 2023 decreased by 0.25 cents to 225.00 cents/lb. light. Trading volume remain average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 39,900 to 48,400 VND/kg.
Rapidly accelerating Eurozone inflation to an all-time high, up 9.1% from a year ago, should underpin the European Central Bank’s (ECB) view of a sharp interest rate hike in Europe. meeting next week. Goldman Sachs warns UK inflation will not stop rising to more than 20% if natural gas prices remain high. While the market increased bets on the possibility that the Fed will raise the basic USD interest rate by 0.75% at this September policy meeting because the US labor market created only 132,000 jobs in August, less than a quarter. half of the 288,000 jobs expected by the market . Most commodity markets are filled with red. The coffee futures markets are no exception.
USDX continues to gain momentum as the greenback continues to be chosen as a haven, pushing emerging currencies down in value, causing the market to lack purchasing power in general. The reais rate fell another 1.76% to 1 USD = 5.2010 R$, which encouraged Brazilians to boost export coffee sales at the exchange rate they are benefiting from.
The prospect of a global recession and a cycle of aggressive monetary tightening by central banks are the deciding factors for speculators at the moment.
ANhan Van (giacaphe.com)
