While the price of Robusta coffee continued to adjust slightly, the price of Arabica coffee reversed to decline due to the expectation that US inflation would decelerate…
Robusta chart London T11/2022 session on September 12, 2022
At the end of the first session of the week, Robusta coffee prices on ICE Europe – London continued to have a mixed trend. The November spot term decreased by 1 USD to 2,263 USD/ton, and the January 2023 delivery term also decreased by 1 USD to 2,252 USD/ton, while the long term futures all maintained a slight increase. Trading volume stay below average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. December spot futures fell 3.75 cents to 224.75 cents/lb and March 2023 delivery fell 3.45 cents to 219.20 cents/lb, significant declines. Trading volume below average.
The price of green coffee beans in the Central Highlands provinces remained unchanged, still fluctuating in the range of 48,300 – 48,800 VND/kg.
The euro’s strong rise against the US dollar, after European Central Bank (ECB) policymakers shrug off the need for further interest rate hikes, helped support London’s Robusta coffee prices to recover at the close of the previous session. Worrying about monetary interest rates more heavily because of the simultaneous increase in interest rates of most central banks in the world.
Meanwhile, USDX continues to decline and is expected to fall further on concerns that US inflation is still high with the consumer price index (CPI) report due to be released today, further contributing to the Federal Reserve. The Federal Reserve (Fed) considers the base interest rate at the upcoming policy meeting.
The lower global risk aversion boosted the Reais by 0.97% to $1 = R$5.0970, prompting Brazilians to reduce sales of the new crop. US stocks also rebounded.
ANhan Van (giacaphe.com)
