Funds and speculators increased their net long position before the possibility that the Fed would prolong the economic tightening cycle that could cause the market to decline…
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to increase. Futures for delivery in January increased by 17 USD to 1,916 USD/ton and term for delivery in March increased by 21 USD to 1,877 USD/ton, significant increases. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. March spot futures added 0.90 cents to 163.50 cents/lb and May futures added 0.85 cents to 164.10 cents/lb, slight gains. Trading volume remain below average.
The price of green coffee beans in the Central Highlands provinces increased by 300-400 VND, to range from 41,400 to 42,000 VND/kg.
Coffee futures prices continued the uptrend as USDX continued to decline, supported emerging currencies to regain value and stimulated Funds and speculators to return to the markets to increase buying after the Fed speculation. interest rate hike will slow down at the next meeting.
Contributing to the uptrend on both coffee futures floors is the report of production and export decline in October of the National Federation of Coffee (FNC) Colombia. According to the report, coffee output in October was only 1,0650,000 bags, down 710,000 bags, or 6.27% lower than the same period last year, and exports in October only reached 854,000 bags, down 281,000 bags, ie. down 24.76% over the same period. Meanwhile, the news that the European Union (EU) will start applying the Treaty to limit products originating from deforestation from 2020 also raises concerns about coffee supply for the consumer market. soon to be limited.
English (giacaphe.com)
