Robusta coffee prices returned to a positive trend after a report that inventories in London continued to fall deeply…
At the end of the first session of the week, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in March increased by 35 USD to 1,860 USD/ton and term for delivery in May increased by 32 USD to 1,829 USD/ton, good increases. Trading volume below average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York continued to decline for the seventh session. March spot futures fell another 0.25 cents to 158.05 cents/lb and May futures fell another 0.05 cents to 158.45 cents/lb, slight losses. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 500-600 VND, up to range from 40,400 to 41,000 VND/kg.
USDX’s decline has supported the commodity derivatives markets to reverse sharply. The reais rose 0.38% to 1 USD = 5,2570 R$, which prevented Brazilians from selling agricultural goods, while demand for many raw goods increased ahead of the reopening of China. . Wall Street investors expressed optimism that inflation will slow down and the US Federal Reserve (Fed) will slow down the pace of monetary tightening.
Arabica coffee prices continued to weaken after the ICE – New York inventory report steadily increased, reaching a 6-month high after falling to a nearly 24-year low in early November 2022. Meanwhile, the ICE – Europe inventory report continued to decrease by 0.06% from the previous week to stand at a 4.5-year low, despite Vietnam’s Customs having just reported a 53% increase in December exports. compared to the previous month, bringing coffee exports in 2022 to a total of 1,777,512 tons, up 13.8% over the previous year. According to export traders, Robusta coffee products from Vietnam are delivered directly to traders without being brought to the London floor to participate in the auction to reduce indirect costs. Therefore, the report of a decrease in inventories in London does not have much impact on the domestic market of the leading producer and exporter of Robusta.
English (giacaphe.com)
