Speculation that the Fed will end its interest rate hike cycle in the middle of next year has caused funds and speculation to balance and adjust capital flows, causing commodity derivatives exchanges to fluctuate wildly…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued to increase. The January delivery term increased by 17 USD, to 2,566 USD/ton and the March delivery term increased by 11 USD, to 2,484 USD/ton, very significant increases. Trading volume remains quite high above average.
On the contrary, the price of Arabica coffee on ICE US – New York floor reversed and decreased. December delivery futures decreased by 4.70 cents, to 176.10 cents/lb and March delivery futures decreased by 3.95 cents, to 171.20 cents/lb, quite sharp drops. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 200 – 300 VND, fluctuating in the range of 59,700 – 60,300 VND/kg.
Immediately after the Republic Day holiday (November 15), Brazilians returned to the market and boosted coffee sales as the Reais currency continued to strengthen at a high level of 1 USD = 4.8697 R$, with the perception that the Fed would not increase the base interest rate further and Copom – Brasil will accelerate the reduction of the Reais interest rate in the context that the global market has become positive again after CPI reports of many major economies in the world grew above expected levels. expectations and oil prices plummeted.
According to observers, the weather forecast next week in the main coffee regions in the south of Brazil will have a lot of rain to help new crop coffee trees escape the hot and dry situation that has caused funds and speculation on the ICE floor – New York quickly balanced and liquidated its current net position. Meanwhile, information about floods in Vietnam causing the new Robusta harvest to slow down and the decline in output from Vietnam and Indonesia this year has helped the London exchange maintain its upward momentum due to demand for coffee. “rich in bitterness” of the consumer market is increasing.
Yesterday, Thursday, November 16, ICE – London reported an increase in inventory of 190 tons, an increase of 0.51% compared to the previous day, registering at 38,490 tons (equivalent to 641,500 bags, 60 kg bags). also caused the increase on Robusta floor to stall near the end of the session.
English (giacaphe.com)
