There seems to be a paradox when the big central banks release “huge” cash to prevent inflation, contributing to pushing up the prices of many goods…
London Robusta chart January 1, 2022 session on 11/23/2021
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor increased for the third consecutive session. Futures for delivery in January increased by 46 USD, to 2,297 USD/ton and term for delivery in March increased by 36 USD, to 2,234 USD/ton, strong increases. Trading volume on average. The island price structure widens the gap.
Similarly, the price of Arabica coffee on the ICE US floor – New York returned to an uptrend. March spot futures rose 11.20 cents to 242.55 cents/lb and May delivery futures rose 10.75 cents to 242.05 cents/lb, very strong gains. Trading volume very high above average. The island price structure is formed.
The price of green coffee beans in the Central Highlands provinces increased by 600-700 VND, ranging from 42,000 to 42,700 VND/kg.
Price of export Robusta coffee grade 2.5% black broken, stood at 1,984 USD/ton, FOB – HCM, with a deduction of about 220 – 250 USD/ton according to the March futures price in London.
The reais fell 0.25%, the exchange rate fell to 1 USD = 5.6080 Reais due to the optimism of the outside market after the US President announced the opening of a reserve to put on the market 50 million tons of oil. It seems that this move has contributed to controlling inflation as the Fed does not want to raise the key rate yet, while speculative capital flows out of the shelters to flow into commodities, causing gold and digital currencies to plunge.
Coffee prices skyrocketed on both exchanges due to concerns that global supply will decrease due to adverse weather and especially supply chain disruptions because the disease is still persistent, despite the latest USDA report showing that The global coffee volume in the new crop year 2021/2022 is not so short that “serious”.
According to observers, the coffee and commodity markets in general are benefiting from the money released by central banks. “innumerable many” to contribute to preventing inflation and stimulating the economy after loosening the gap.
However, what really interests speculators is, once the supply chain is opened up, what will happen, especially in the coffee markets with the current sky-high discount (dif.) prices. now on.
ANhan Van (giacaphe.com)
