Speculation that the Fed will be tougher after the US’s third quarter GDP report has caused increased risk concerns, causing stocks and derivatives to continue to be liquidated…
At the end of the weekend trading session, Robusta coffee prices on ICE Europe – London continued to decline for the fourth session. January delivery futures decreased by 37 USD, to 2,383 USD/ton and March delivery futures decreased by 30 USD, to 2,355 USD/ton, very significant reductions. Trading volume is above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. December delivery futures decreased another 0.25 cents, to 160.95 cents/lb and March 2024 delivery futures decreased another 0.40 cents, to 160.50 cents/lb, slight decreases. Trading volume is above average.
The price of green coffee in the Central Highlands provinces decreased by 500 – 600 VND, fluctuating in the range of 58,700 – 59,400 VND/kg.
Coffee futures prices continued to fall to the lowest level of the week after prolonged liquidation pressure on both markets. A slight increase in DXY also contributed to the price decrease.
The European Central Bank (ECB) has just decided not to change the current interest rate (4 – 4.5%/year). Inflation data in the US is still higher than the target set by the Fed, causing Wall Street investors to worry that the Fed will be tougher at the monetary management meeting in the middle of next week. The market also reacted negatively to the conflict in the Middle East, increasing risk appetite. US stocks ended mixed.
Weather reports in the main coffee regions of southeastern Brazil have had plenty of rain, providing good support for coffee trees for the new cotton crop, and reports that ICE – New York inventories fell to a 1-year low have supported floor futures prices. This does not decrease further.
Coffee prices in the Brazilian domestic market tend to be mixed. The Reais exchange rate decreased by 0.43% to 1 USD = 5.0123 R$, which also did not encourage Brazilians to increase export coffee sales.
English (giacaphe.com)
