Commodity funds and speculators increased their net selling to a two-year high, causing international traders to fear that they would not be able to buy coffee to supply the consumer market because the price was too low…
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange returned to an uptrend. Futures for delivery in January increased by 22 USD to 1,834 USD/ton and term for delivery in March increased by 16 USD to 1,804 USD/ton, significant increases. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. March spot futures added 4.30 cents to 164.70 cents/lb and May delivery added 3.65 cents to 164.40 cents/lb, strong gains. Trading volume quite above average.
The price of green coffee beans in the Central Highlands provinces increased by 300-400 VND, fluctuated in the range of 40,200-40,700 VND/kg.
Double-exchange coffee prices returned to the upside along with commodity prices in general after the Commitment of Traders (CFTC) report showed futures markets increased net selling to two-year highs. to prepare to collect goods for the new coffee year 2022/2023. Contributing to the uptrend is a report by the Foreign Agricultural Service (FAS) of the United States Department of Agriculture (USDA), stating that Colombia is the world’s leading producer and exporter of high-quality wet-processed Arabica coffee. The world in the new coffee crop year 2022/2023 only produced 12.6 million bags, down 3.1% from the previous forecast, due to excessive rain during the current harvest season. Note, if Colombia rains a lot, it will dry out Brazil’s main coffee regions across the Andes.
The weather forecast in the Central Highlands coffee area is cloudy and scattered rains for a long time will hinder the harvesting and drying of the new crop, which will slow down the supply for the export market.
English (giacaphe.com)
