During the week, funds and speculators returned to commodity markets to increase purchases, helping the price of green Robusta coffee in the Vietnamese domestic market set an all-time record high…
For the whole week of December 2024, the London market had 3 increasing sessions and 2 alternating decreasing sessions. Robusta coffee futures for May delivery increased by a total of 50 USD, or 1.51%, to 3,358 USD/ton and for July delivery, increased by a total of 53 USD, or by 1.65%, to 3,264 USD/ton. tons, significant increases. Trading volume remains above average.
Similarly, the New York market had 2 increasing sessions and 3 decreasing sessions. Arabica coffee futures for delivery in May increased by a total of 2.10 cents, or 1.15%, to 185.05 cents/lb and futures for delivery in July increased by a total of 2.55 cents, or by 1. 40 %, up at 184.20 cents/lb, significant increases. Trading volume is very high above average.
The price of green coffee in the Central Highlands market increased by 2,000 – 2,100 VND, fluctuating in the range of 94,200 – 94,800 VND/kg.
During the week, DXY increased slightly by 0.1% after the Fed announced that it would maintain the process of cutting interest rates three times in 2024. This excited funds and speculators to return to commodity markets to increase buying. Meanwhile, ICE inventory reporting data on both exchanges was strongly supplemented. Arabica rose to an 8-1/2-month high of 586,077 bags, bouncing off a 24-year low reported in early October 2023. Robusta rose to a 7-week high registering 29,280 tonnes, mainly Brazilian Conilon Robusta coffee.
At the end of the week, DXY continued its upward momentum right after news of the Swiss Central Bank (SNB) cutting the Swiss Franc interest rate by 0.25% to 1.5%/year and the possibility of the UK Central Bank ( BoE) may start cutting interest rates. Previously, the Central Bank of Brazil (BC) cut the Reais interest rate by 0.5% to 10.75%/year, which has helped Brazilians slow down sales and the Central Bank. Japan raised the Yen interest rate to 0.1%, ending a long period of negative interest rates since 2016. Prices in most commodity markets have softened.
Robusta coffee inventories issued by the London Exchange Certified and monitored, as of Friday, March 22, increased by 2,030 tons, or 7.45% compared to a week earlier, to register at 29,280 tons, (about 488,000 bags, 60 kg bags), a quite strong increase, has contributed to coffee futures prices returning to a downward trend.
Anh Van (giacaphe.com)
