New crop selling pressure continues to weigh on both coffee derivatives markets…
For the whole week 46, London market had 4 decreasing sessions and 1 increasing session. The price of Robusta coffee for January delivery fell by all 25 USD, or 1.36%, to 1,811 USD/ton and for March delivery fell all by 38 USD, or 2.08%, to 1,825 USD. /ton, the reductions are very significant. Trading volume on average.
In contrast, the New York market had 5 consecutive losing sessions throughout the week. The price of Arabica coffee for December delivery fell all of 18.80 cents, or 11.05%, to 151.30 cents/lb, and for March 2023 delivery fell all of 13.00 cents, ie. down 7.73%, to 155.10 cents/lb, very strong declines. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands market decreased from 500 to 600 VND, to range from 39,900 to 40,400 VND/kg.
The pressure to harvest new crops from many major producers, combined with the liquidation of positions before the first announcement date (FND) of the New York Arabica coffee market continues to drag the price of two-floor futures coffee to the next level. continued to decline. Meanwhile, the forecast that the world economy will continue to decline will reduce the demand for coffee consumption along with the increase in monetary interest rates of many countries around the world, which will cause speculation to shift capital flows out of the country. Commodity market in general to come to USDX and long-term Treasuries are now offering more attractive returns.
The weather forecast will bring heavy rain to the coffee producing countries on the Pacific Rim until February next year, while the forecasted weather phenomenon in La Niña is also uncertain, making the market is focusing on monitoring, because of concerns about drought in the southeastern coffee regions of Brazil.
The somewhat improving data of the US economy has made the tone of the Fed officials recently become tougher, also contributing to the funds and speculators reluctant to buy goods because of concerns about rising interest rates.
Inventories of Robusta coffee, which are certified and monitored by the London floor, as of Monday, November 14, have decreased by 1,010 tons, or 1.12% from a week earlier, to registered at 89,570 tons. equivalent to 1,492,833 bags, 60 kg bags).
English (giacaphe.com)
