August GCA inventory report has slowed the increase of Arabica and Robusta to prolong the negative trend…
Robusta chart London T11/2022 session on September 15, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor extended the falling chain to the fifth session. The November spot term decreased by 4 USD to 2,226 USD/ton and the January 2023 delivery term decreased by 5 USD to 2,214 USD/ton, slight decreases. Trading volume on average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to increase. December spot futures rose 1.55 cents to 216.40 cents/lb and March 2023 futures rose 1.05 cents to 211.20 cents/lb, slight gains. Trading volume below average.
The price of green coffee beans in the Central Highlands provinces decreased by 0-100 VND, down to the range of 47,600 – 48,100 VND/kg.
Arabica coffee prices bounced up at the beginning of the session when consultants – analysts Safras & Mercados released a report on crop production in Brazil this year, in which Conilon Robusta coffee increased slightly and Arabica coffee decreased by 2.9 million. Compared to their own forecasts, in the year Arabica produced cyclically high production “two years one”. But in the second half of the session, the August inventory report of the North American Coffee Association (GCA) increased by more than 5% year-on-year, causing the increase in Arabica to slow down and Robusta to reverse slightly near the end. session.
The US economic index reports continued to be released with mixed results. While the August retail sales report rose 0.3% month-on-month and the unemployment rate fell for the fifth straight week, the job market remains strong. USDX continued its rally and US stocks reversed to slightly lower, speculative capital continued to seek shelter, causing long-term US Treasury yields to continue to be pushed to 20-year highs. This will pave the way for the Fed to maintain monetary tightening.
The Brazilian Reais continued to fall another 1.15% to 1 USD = 5,2390 R$, encouraging Brazilians to boost sales of agricultural exports.
Note, in the middle of next week, the Fed – US and Copom – Brazil will have meetings to manage monetary interest rates, which are of great interest to the market.
ANhan Van (giacaphe.com)
