A higher-than-expected October jobs report and an upward revision of the US Department of Labor’s September employment data sent the USDX down sharply and the market’s optimism again…
London Robusta Chart January 1, 2023 on November 4, 2022
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in January increased by 27 USD, to 1,869 USD/ton and term for delivery in March increased by 23 USD, to 1,850 USD/ton, significant increases. Trading volume remain above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also trended up. December spot futures rose 3.55 cents to 175.75 cents/lb and March delivery futures rose 3.30 cents to 171.65 cents/lb, strong gains. Trading volume quite above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 dong, up to range from 41,200 to 41,700 dong/kg.
The price of coffee on both exchanges reversed to increase when the USDX dropped sharply again after the October employment report of the US Department of Labor was higher than expected, reaching 261,000 jobs compared to the market’s expected 200,000 jobs. At the same time, the US Department of Labor also adjusted the September data to 315,000 jobs instead of only 263,000 jobs as previously reported. This is a number that is very much waiting for the interest of the Fed in managing monetary policy in the coming period as said by the Fed Chairman on Wednesday. Meanwhile, the reopening of China’s economy has brought relief to the general commodity market.
The Reais rose 1.42% to $1 = R$5,0510, contributing to a greater risk-on sentiment beyond safe-haven assets like the USD and long-term Treasuries. Therefore, speculative capital flows back to the derivatives markets to increase purchases, while real coffee in the Brazilian domestic market, despite having a significant plus, is difficult to buy because growers do not want to sell coffee. in the low price range.
ICE’s inventory report is still hovering around 23-year lows, while coffee futures prices continue to come under downward pressure on fears of a global recession, as well as the world’s top coffee producer. The world is heading for a record crop of 2023 that has caused the markets to constantly reverse in recent days.
English (giacaphe.com)
