ICE inventory reports continue to decline, supporting a bullish market…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued the upward trend. The January delivery term increased by 24 USD, to 2,430 USD/ton and the March delivery term increased by 26 USD, to 2,386 USD/ton, very significant increases. Trading volume remains at an average level.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. December delivery futures increased by 4.45 cents, to 178.80 cents/lb and March 2024 delivery futures increased by 2.10 cents, to 174.20 cents/lb, the increases are also very significant. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 300 – 400 VND, fluctuating in the range of 58,600 – 59,100 VND/kg.
Believing that the Fed has stopped raising interest rates and that supply continues to be short-term, speculative capital continues to flow to the two coffee derivatives floors. Despite many warnings, the markets have entered the zone “overbought”coffee futures prices continue to increase steadily.
Yesterday, the Fed Chairman cautiously said that the Fed was ready to immediately raise interest rates if inflation did not show signs of further improvement. Although this is not new, it also discourages investors, possibly causing investors to shift capital flows in today’s session. Right after 24 billion USD of long-term treasury bonds were successfully auctioned and they expected softer statements.
DXY increased by 0.68% right after the Fed Chairman’s speech did not rule out the possibility of further interest rate increases, US stocks turned around, many commodity exchanges reversed due to receiving speculative capital flows.
The National Federation of Coffee Growers (FNC) in Colombia reported coffee production in October reached 1,157,000 bags, an increase of 269,000 bags, or an increase of 30.29% over the same period last year. At the same time, FNC – Colombia also reported that coffee exports in October reached 906,000 bags, down 38,000 bags, or down 4.03% over the same period last year. FNC has set an export target for the 2023/2024 coffee season to reach 12 million bags after three years of weak export results due to bad weather that limited the output of quality wet-processed Arabica coffee producers. top level has dropped significantly.
According to the General Department of Vietnam Customs, coffee exports in October only reached 728,750 bags, down 14.21% over the previous month and down 48.80% over the same period last year. This has contributed to showing that Robusta supply to the consumer market in the short term is still tense.
English (giacaphe.com)
