Dry weather forecast in Brazil threatens to damage coffee trees and push up coffee prices…
At the end of the trading session, Robusta coffee prices on ICE Europe – London floor increased for the third consecutive session. The January delivery term increased by 43 USD, to 2,802 USD/ton and the March delivery term increased by 45 USD, to 2,769 USD/ton, strong increases. Trading volume remains well above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor also increased for the third consecutive session. March delivery futures increased by 3.40 cents, to 188.65 cents/lb and May delivery futures increased by 2.80 cents, to 185.30 cents/lb, quite good increases. Trading volume is very high above average.
The price of green coffee in the Central Highlands provinces increased by 1,000 – 1,200 VND, fluctuating in the range of 64,900 – 65,600 VND/kg. Fresh coffee prices trade around 13,400 VND/kg.
Forecasts of hot, dry weather in Brazil in the next few days that could harm coffee trees and next year’s crop output have fueled a bullish market. Coffee futures prices have fluctuated strongly in the past three consecutive sessions due to speculation that the Fed will pause the interest rate hike cycle in line with market expectations when inflation in the US shows signs of slowing. the investors.
Contributing to the rising price market is the information that Brazil’s Monetary Policy Committee (Copom) has just announced a cut in the Reais interest rate by 0.5% to 11.75%/year and announced that it will maintain maintain this reduction level in the following times.
Information that Vietnamese exporters cannot buy goods to fulfill expired contracts, similar to Indonesia today, even in the middle of the new harvest season, also contributes to stress on coffee futures prices in the future. short and medium term.
English (giacaphe.com)
