The price of coffee on two futures exchanges jumped after the report of the third crop survey of Conab – Brazil…
Robusta chart London 11/2022 session on September 20, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. The November spot term increased by 34 USD, to 2,236 USD/ton and the term for delivery in January 2023 increased by 32 USD, to 2,221 USD/ton, very significant increases. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures increased by 4.05 cents to 225.15 cents/lb and March 2023 delivery added 3.30 cents to 218.75 cents/lb, gains were also significant. . Trading volume above average.
The price of green coffee beans in the Central Highlands provinces increased by 600 – 700 VND, to ranged in the range of 47,700 – 48,300 VND/kg.
Coffee prices rebounded sharply after the report of the third crop survey of Conab Brasil. Accordingly, Conab has reduced its forecast for Brazil’s production this year by 3 million bags to 50.4 million bags due to adverse weather, including 32.41 million bags of Arabica and nearly 18 million bags of Conilon Robusta. Even if this is a number that does not surprise the market because Conab is inherent “traditional” gave a forecast lower than the actual figure of about 5-8%, but the price of coffee increased due to concerns that Brazilians would limit coffee sales, in the context of the market speculating on the possibility of the Fed – US and Copom. – Brazil strongly raised the monetary base interest rate at the ongoing policy meeting. The reais rose slightly by 0.21% to 1 USD = 5,1530 R$, which contributed to preventing Brazilians from selling new crop coffee, causing the market to return to supply concerns when the ICE inventory report was at a high level. low, despite heightened risk concerns as a number of major central banks are considering the possibility of tightening monetary policy to help prevent a global economic downturn.
The market is watching the Fed’s decision today with speculation that the USD base rate will increase by 0.75%, but also do not rule out the final number may be stronger.
ANhan Van (giacaphe.com)
