The news that the bottlenecks at Brazil’s agricultural export ports have been removed also contributed to the coffee futures market returning to a downward trend…
At the end of the trading session, Robusta coffee prices on ICE Europe – London floor reversed and decreased. The January delivery term decreased by 54 USD, to 2,312 USD/ton and the March delivery term decreased by 53 USD, to 2,276 USD/ton, quite a decrease. Trading volume remains above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. Futures for delivery in December decreased by 7.50 cents, to 159.80 cents/lb and futures for delivery in March 2024 decreased by 6.05 cents, to 158.85 cents/lb, very sharp drops. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 1,100 – 1,200 VND, fluctuating in the range of 57,500 – 58,100 VND/kg.
Weather forecast information in the main coffee growing regions in southern Brazil has good rain this week and next week, continuing to support coffee futures markets to return to a downward trend.
Brazil’s Monetary Policy Committee (Copom) decided to cut the Reais base interest rate by 0.5% for the third consecutive time, down to 12.25%/year as the market expected and said it would maintain it. This reduction is to prevent excess inflation. The Reais has increased by 1.35%, bringing the exchange rate to 1 USD = 4.9709 R$ after Copom’s decision to cut interest rates, due to the possibility that the Fed will still maintain USD interest rates in the range of 5.25 – 5. 5%/year and signs of recession in the US economy may cause the Fed to keep interest rates stable until the year-end meeting.
US stocks recovered strongly, after the Federal Reserve’s (Fed – US) decision to keep interest rates unchanged for the second time, putting commodity derivatives exchanges at a disadvantage.
. English (giacaphe.com)
