During the week, coffee futures prices soared due to the excitement of speculators, after the Fed Chairman announced that he would delay cutting interest rates until the second half of the year, causing DXY to fall sharply, supporting prices. Many commodities set new highs…
For the whole week of October 2024, the London market had 3 increasing sessions and 2 alternating decreasing sessions. Robusta coffee futures for delivery in May increased by a total of 154 USD, or an increase of 4.90%, to 3,297 USD/ton, and futures for delivery in July increased by a total of 133 USD, or an increase of 4.35%, to 3,190 USD/ton. tons, pretty good increases. Trading volume remains above average.
Similarly, the New York market also had 3 increasing sessions and 2 decreasing sessions. Arabica coffee futures for delivery in May increased by 1.90 cents, or 1.04%, to 185.20 cents/lb and futures for July delivery increased by a total of 2.05 cents, or an increase of 1.13%. , up at 183.45 cents/lb, very significant levels. Trading volume is very high above average.
The price of green coffee in the Central Highlands market increased by 5,000 – 5,200 VND, fluctuating in the range of 90,200 – 90,700 VND/kg.
During the week, DXY decreased 0.8% after the Fed chairman’s announcement of delaying interest rate cuts until the second half of this year caused speculative capital to flow massively into commodity derivatives markets. Funds and speculators returned to coffee futures markets to increase buying, despite unsupportive fundamentals with reports of increased exports from many producing regions around the world, according to the monthly Trade report. 1 of the International Coffee Organization (ICO). Strong purchasing power has triggered automatic buy orders pushing coffee futures prices to new record highs.
However, the market is still cautious as Brazil prepares to begin harvesting a new crop this year, promising to increase hedge selling power on futures exchanges and the Reais currency is currently at a favorable level to They sell coffee for export.
Inventories of Robusta coffee issued by the London Exchange Certified and Monitored, as of Friday, March 8, decreased by 160 tons, or 0.66% compared to a week earlier, to register at 24,030 tons ( about 400,500 bags, 60 kg bags), a slight decrease, also contributing to supporting the price trend on the London floor.
Anh Van (giacaphe.com)
