The ECB raised the basic interest rate by 0.75% to show its determination to coordinate with major central banks to fight inflation after keeping interest rates unchanged for too long…
Robusta chart London T11/2022 session on September 8, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange rebounded. The November spot term increased by $38, to $2,276/ton and the January delivery term in January 2023 increased by $32, to $2,255/ton, significant increases. Trading volume on average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York continued the downtrend. December spot futures fell another 1.05 cents, to 222.20 cents/lb, and March 2023 futures fell another 0.65 cents to 216.70 cents/lb, slight declines. Trading volume remain above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, to ranged in the range of 48,400 – 48,900 VND/kg.
USDX continued to remain at a high level as soon as the European Central Bank (ECB) decided to raise the Common Currency interest rate by 0.75% and left open the possibility of an increase in the next period with the focus on anti-inflation, currently at rate of 8.9% in the US and 9.1% in Europe, despite fears of a recession in the Eurozone. The two coffee floors have been mixed, it seems that if the market continues to implant monetary interest in the London Robusta, the New York Arabica will correct down due to the selling pressure of the new Brazilian crop when the Reais exchange rate is currently at favorable level for them to sell export coffee. The Reais exchange rate increased slightly by 0.61% to 1USD = 5.2070 R$, showing a tougher stance of the Central Bank of Brazil (BC) in the fight against inflation.
According to the Brazilian Institute of Geography and Statistics (IBGE), Brazil’s coffee production in 2022 is estimated at 53.7 million 60-kilogram bags, up 0.9 percent year-on-year and 9.6 percent year-on-year. The slight increase from the August forecast is due to a higher forecast of Conilon Robusta coffee production.
English (giacaphe.com)
