The heightened risk aversion has caused funds and speculators to return to liquidating their net positions in the short term…
For the whole week 49, London market had 3 increasing sessions and 2 decreasing sessions. The price of Robusta coffee for delivery in January decreased by all 4 USD, or 0.21%, to 1,884 USD/ton and for March delivery increased by all 18 USD, or 0.98%, to 1,864 USD. /ton, significant increases/decreases. Trading volume above average.
On the contrary, the New York market had 3 decreasing sessions and 2 increasing sessions. The price of Arabica coffee for March delivery fell all of 4.45 cents, or 2.74%, to 158.15 cents/lb, and for May delivery fell all of 4.25 cents, or 2. .60%, to 158.95 cents/lb, the declines are quite strong. Trading volume remain above average.
The price of green coffee beans in the Central Highlands market increased by 100-200 dong, ranging from 41,100 to 41,600 dong/kg.
The highlight of the week was the report that the US Producer Price Index (PPI) in November increased by 0.3% compared to October, higher than the market expectation of 0.2%, showing that US inflation is still high. and the risk of economic recession is not easy to improve soon, causing coffee futures prices to reverse and plunge in the last trading session of the week. (See price chart) due to speculation shifting capital flows to seek safe havens.
Risk aversion increased when the market speculated that the Fed would still tighten its grip on the economy at its monetary management meeting in the middle of next week.
Weather information Brazil continues to have favorable rain in the main southeastern coffee regions, supporting the new coffee crop 2023/2024 that will give a record output, combined with the report of Vietnam exporting Robusta coffee in November reached 2.14 million bags, up 19.74% over the same period last year, had a very significant impact on world coffee futures prices.
As of Monday, December 5, the inventory of Robusta coffee certified and tracked by the London floor has decreased by another 7,670 tons, or 8.97% decrease from a week earlier, to registered at 77,850 tons (equivalent to 1,278,333 bags, 60 kg bags). According to international traders, London inventories are likely to decrease further because they are not interested in bringing coffee to the floor for auction because futures prices are not attractive at present.
English (giacaphe.com)
