Two exchanges turn bullish on support as emerging currencies regain value…
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in January increased by 11 USD, to 1,956 USD/ton and term for delivery in March increased by 10 USD, to 1,868 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. The March spot futures rose 3.50 cents to 167.80 cents/lb and the May delivery futures rose 3.10 cents to 167.60 cents/lb, very significant gains. Trading volume below average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 41,000 to 41,500 VND/kg.
Continued weakness in USDX has supported prices of most commodities regaining momentum as Funds and speculation returned to the markets to buy as emerging currencies added value.
Meanwhile, the energy crisis in Europe is becoming more and more complicated, due to the prolonged fierce war between Russia and Ukraine, causing increasingly limited supply, has continued to have a negative impact on the consumer market. the world’s leading coffee drinker.
According to observers, the Bank of Japan’s (BoJ) move to adjust its bond yield controls to allow for further increases in long-term interest rates has caused the yen’s appreciation against the dollar and following the rise of emerging currencies contributed to support the purchasing power of goods in yesterday’s trading session.
The reais increased by 1.75%, the exchange rate increased to 1 USD = 5.2090 R$ also contributed to encourage Brazil to reduce selling which supported the price increase.
According to the latest USDA report, the global coffee production forecast in the coffee year 2022/2023 will increase by 3.69% to 172,750 million bags, thanks to an increase in Brazilian production, while global consumption is forecasted. increased 0.46% to 167.945 million bags, thus resulting in a global oversupply this crop year of around 4.806 million bags.
As of Monday, December 19, the inventory of Robusta coffee certified and issued by the London floor has decreased by 8,820 tons, or 11.84% less than a week earlier, to 65,660 tons. (equivalent to 1,094,333 bags, 60 kg bags), confirming a 7-week losing streak.
English (giacaphe.com)
