Coffee prices on both floors weakened again following the erratic rise and fall of USDX and speculation about the Fed’s monetary policy next time…
At the end of the first session of the week, Robusta coffee prices on ICE Europe – London returned to a downtrend. Futures for delivery in January decreased by 12 USD, to 1,824 USD/ton and term for delivery in March decreased by 10 USD to 1,815 USD/ton, slight decreases. Trading volume remain average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued the downtrend. December spot futures fell 3.90 cents to 166.20 cents/lb and March futures fell 1.20 cents to 166.90 cents/lb, slight losses. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 40,400 to 40,900 VND/kg.
Coffee prices on both floors plunged at the beginning of the session, but recovered significantly at the close of the session with a downtrend (see price chart) due to the erratic rise and fall of USDX depending on the speculation that the Fed will tighten or loosen monetary interest rates at the December policy meeting. Once speculated that the Fed will tighten, the Funds and speculators rush to liquid. , and speculating that the Fed will loosen, funds and speculators will buy again because the current price of coffee futures is quite low, Arabica is approximately the 15-month low. Most significantly, ICE – New York currently has 456,133 bags awaiting quality inspection, a number that is surprising to those who do not understand. According to observers, this is actually a number of long-term inventories, which are exported from the floor for re-inspection because of doubtful quality problems, not goods from new manufacturers that have been registered for sale. Auction.
Note, Brazilian semi-wash Arabica coffee listed on the floor is subject to a fixed deduction of 10 cents/lb under the agreement due to quality issues, while wet processed Arabica coffee from Mexico – Central America region accounted for mainly with a fixed premium of 10 cents/lb and high quality Colombian wet processed Arabica coffee with a fixed premium of 18 cents/lb has been absent from the market for quite some time.
US stocks fell again, as Wall Street investors waited for the third-quarter balance sheets of major US retailers. Speculative capital flows strongly into long-term US Treasuries because they currently have more attractive yields.
Reais exchange rate fell another 0.41%, down to 1 USD = 5,3030 R$, which supported Brazilians to boost sales of agricultural products for export.
English (giacaphe.com)
