The pressure of November futures contracts in New York supported the bullish trend as the coffee futures markets entered the “oversold” zone…
London Robusta chart January 1, 2023 right 11/11/2022
At the end of the last session of the week, Robusta coffee prices on ICE Europe – London continued the uptrend. Futures for delivery in January increased by 9 USD to 1,836 USD/ton and term for delivery in March increased by 11 USD to 1,825 USD/ton, slight increases. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York tends to be mixed. December spot futures fell 0.90 cents to 168.10 cents/lb, while March futures rose 0.40 cents to 168.10 cents/lb, slight gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, up to range from 40,500 to 41,100 VND/kg.
Coffee prices on the two floors continued the upward trend due to the impact of the US Consumer Price Index (CPI) report in October on the world financial and commodity markets in general, along with the information on the Chinese market opening. The reopening contributed to the price increase due to the expectation of increased commodity demand.
Besides, USDX’s strong decline for 2 consecutive sessions also encouraged Funds and speculators to return to the markets to buy after the price of coffee futures dropped to too low levels and technicals showed that the market school has “oversold”is an opportunity to buy strongly.
Preliminary data reported by Vietnam Customs shows that coffee exports in October only reached 79,833 tons (about 1.33 million bags), down 13.74% from the previous month and down 19.71% compared to the previous month. same period last year, also contributed to stimulate price increase.
Investment bank Rabobank forecasts a potential global coffee surplus in the 2023/2024 crop year due to an expected decline in consumption due to the economic downturn and energy crisis, but this is still a long way off.
The reais rose 1.31%, to 1 USD = 5,3250 R$, which will prevent Brazilian sales from slowing down, helping to support the recovery of coffee futures on both exchanges.
English (giacaphe.com)
