USDX declines in the basket of strong currencies, causing Brazilians to reduce selling, causing the price of Arabica coffee to skyrocket…
New York Arabica chart T12 session on September 19, 2022
At the end of the trading session alone at the beginning of the week, the price of Arabica coffee on the ICE US exchange – New York reversed and skyrocketed. December spot futures rose 6.00 cents to 221.10 cents/lb and March 2023 futures rose 5.70 cents to 215.45 cents/lb, strong gains. Trading volume on average.
Meanwhile, Robusta coffee prices on the ICE Europe – London exchange remained unchanged due to the closure National Funeral Holiday for the Queen of Great Britain.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 VND, to range from 47,100 to 47,600 VND/kg.
Arabica coffee prices fluctuated sharply in a solo session earlier in the week immediately after Friday’s ICE-managed inventory report fell to 532,448 bags, a 23-year low.
According to observers, the strong volatility in commodity markets is the risk aversion of speculators about the upcoming tightening of monetary policy by major central banks and the shift of capital flows. to look for short-term profit, while the reported data at the moment seems to be just an excuse for the price to increase/decrease very erratically.
The reais rose sharply by 1.82% to 1 USD = 5,1640 R$, causing Brazilians to reduce sales of new crop coffee, which supported the price of Arabica coffee futures to skyrocket as the market was still concerned about the shortage of sources. supply with controversy over Brazil’s coffee production this year is not as high as expected. Meanwhile, the actual price of coffee in the Brazilian domestic market remained unchanged from last Friday.
According to the published schedule, on Tuesday, September 20, the Agricultural Product Forecasting and Supply Company (Conab) under the Brazilian Ministry of Agriculture will announce the results of the third 2022/2023 crop survey.
Kinh Vu (giacaphe.com) visiting an Arabica coffee garden in Sao Paulo, Brazil.
ANhan Van (giacaphe.com)
