The price of Arabica coffee faced the pressure of the September futures contract expiration, forcing funds and speculators to forcefully liquidate…
Robusta chart London September 2022 session on August 5, 2022
At the end of the last trading session of the week, the price of Robusta coffee on the ICE Europe – London floor adjusted the mixture. The September spot futures fell by $2, down to $2,043 per ton, while the futures for far delivery all increased. Specifically, the November delivery term increased by 1 USD, to 2,042 USD/ton and the delivery term in January 2023 increased by 1 USD, to 2,011 USD/ton, very slight increases/decreases. Trading volume remain above average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. September spot futures fell 9.85 cents to 209.45 cents/lb and December futures fell 9.35 cents to 206.40 cents/lb, very sharp declines. Trading volume at a “terrible” level, rarely seen.
The price of green coffee beans in the Central Highlands provinces remained unchanged, still fluctuating in the range of 41,000 – 41,600 VND/kg.
The price of Arabica coffee reversed to plunge due to the liquidation of funds and speculation before the approaching expiration of the September futures contract in New York.
According to observers, the liquidation of funds and speculations was quite strong because the pressure of USDX turned back slightly and the employment report (payroll) of the US Department of Labor exceeded expectations. , this indicates Federal Reserve (Fed – US) there will be room to increase the basic interest rate even more aggressively.
Arabica coffee prices fell sharply despite FNC – Colombia, the world’s leading producer of high-quality wet-processed Arabica coffee, reported a July production and export decrease of approximately 20% over the same period last year. last year. Because Colombia’s Arabica coffee is put on the ICE – New York floor for auction with a modest volume, although it has been set a plus of 18 cents/lb, while there are not enough at the export ports of this country. goods to be delivered to international roasters with a huge plus, so it did not have a significant impact on the New York Stock Exchange.
On the contrary, the London Robusta coffee price still stands firm after the market stimulus to attract spot goods from producing countries. Robusta inventory report at ICE – Europe on Tuesday, August 2, showed that the amount of coffee brought to the London floor registered decreased by 517 tons, or 0.48% down from a week earlier, to 102,290 tons, equivalent to 1,704,833 bags, 60 kg bags and continues to decrease, while the deduction (Dif.) in producing countries has dropped sharply from a high of $380/ton at the beginning of this season to 20 – 30 USD/ton but the source is also very difficult to find.
English (giacaphe.com)
