The fact that many major central banks in the world still keep monetary interest rates unchanged has prompted funds and speculation to return to the markets to increase buying…
At the end of the trading session, Robusta coffee prices on the ICE Europe – London exchange reversed to increase. January delivery futures increased by 16 USD, to 2,328 USD/ton and March delivery futures increased by 9 USD, to 2,285 USD/ton, slight increases. Trading volume remains above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. December delivery futures increased by 5.50 cents, to 165.35 cents/lb and March 2024 delivery futures increased by 5 cents, to 163.85 cents/lb, quite strong increases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 100 – 200 VND, fluctuating in the range of 57,700 – 58,200 VND/kg.
Coffee futures prices recovered on both exchanges after the second time the Fed decided to keep interest rates unchanged in the range of 5.25 – 5.5%/year because the US economy still shows signs of recession. DXY’s decline helped most commodity markets regain their green color. Coffee prices also have additional support from Copom – Brasil cutting the Reais interest rate by 0.5% for the third consecutive time to 12.25%/year. Yesterday, the Central Bank of the United Kingdom (BoE) also contributed to promoting funds and speculation to return to the market to increase buying by keeping the Pound interest rate unchanged at 5.25%/year.
ICE’s reported data shows that inventories on both exchanges continue to decline, supporting the bullish market trend.
English (giacaphe.com)
