It is rare for the derivatives exchanges with high liquidity to drop simultaneously, the speculative capital inflows leaving the commodity market make the prospect of an economic recession even clearer…
Robusta chart London 11/2022 session on September 1, 2022
Ending the session, the price of Robusta coffee on ICE Europe – London continued to decline for the fifth session. The November spot term decreased by another 22 USD, to 2,228 USD/ton and the term for delivery in January 2023 decreased by 21 USD to 2,217 USD/ton, significant reductions. Trading volume very below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also continued the fourth consecutive decline. December spot futures fell another 2.75 cents to 232.50 cents/lb and March 2023 futures fell another 2.85 cents to 225.75 cents/lb, significant reductions. Trading volume remain average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 47,500 to 48,100 VND/kg.
Commodity markets continued to be negative on fears of a stronger base rate hike in the US and Europe and with signs of an ongoing economic downturn. Liquid derivatives markets such as gold and crude oil continue to decline along with coffee prices, which is rare.
US stocks’ reversal after a series of consecutive declines is a positive point, but USDX continues its rally in the face of the risk of a global recession and expectations of further tightening monetary policies are the main factors driving the USD higher. strength in the basket of currencies, causing the value of emerging currencies to weaken continuously, reducing the purchasing power of goods in general.
The reais fell another 0.71% to 1 USD = 5,2380 R$, further encouraging Brazilians to sell their new crop of coffee exports by forward method.
The market is looking forward to the August US nonfarm payrolls report to be released today to assess the next steps of the Federal Reserve (Fed).
English (giacaphe.com)
