Fears of a global recession and a strengthening USDX have hampered the purchasing power of commodities in general…
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to decrease. The March spot futures fell by $20 to $1,840 per tonne and the May delivery term fell by $16 to $1,813 per ton, significant reductions. Trading volume remain below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York extended the losing streak to the eighth session. The March spot futures fell another 7.15 cents to 150.90 cents/lb and the May delivery futures fell another 6.85 cents to 151.60 cents/lb, very strong declines. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 40,100 to 40,600 VND/kg.
Robusta coffee prices fell again after it was reported that the Suez Canal had cleared the congestion caused by a ship transporting 60,000 tons of corn from Eastern Europe to China. It is known that Robusta coffee goods from Southeast Asia are transported to Europe, the world’s largest coffee consuming market, by this maritime route. Therefore, the negative news about this arterial route will have an immediate impact on the London floor price.
Fed Chairman Jerome Powell’s speech stirred stock exchanges after the CPI report showed inflation was still so bad. “According to the market’s expectation that interest rates should only be increased by 0.25% at the February meeting”. With China reopening and Fed officials being less tough, US stocks rebounded strongly and USDX bounced back, hampering general purchasing power.
The world coffee market is waiting for Conab – Brazil to report the upcoming 2023/2024 crop survey results.
Trade in Vietnam’s domestic market continues to be quiet because people are not interested in selling coffee at the current London price, while the market is applying a deduction of about 80-90 USD/ton.
English (giacaphe.com)
