Although the market was a little excited when China reopened, speculation that the Fed will raise the USD interest rate by 0.5% at the first meeting of the new year continues to put coffee prices at a disadvantage…
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to fall deeply. The March spot term decreased by 29 USD to 1,811 USD/ton and the May delivery term decreased by 33 USD to 1,780 USD/ton, sharp declines. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York followed a series of ninth session declines. The March spot futures fell another 7.00 cents to 143.90 cents/lb and the May delivery futures fell another 6.90 cents to 144.70 cents/lb, very strong declines. Trading volume at a “terrible” level, rarely seen.
The price of green coffee beans in the Central Highlands provinces decreased by 500-600 VND, to range from 39,600 to 40,000 VND/kg.
The price of Robusta coffee continued to decline due to the net selling of Commodity Funds and short-term speculation as the leading Robusta producer is about to enter a long holiday to celebrate the Lunar New Year in the year of the Rabbit from the end of next week. Meanwhile, Arabica coffee prices continued to fall deeply, to stand at more than 20-month lows, after importer Wolthers Donque in the United States forecast Brazil production will reach a record 65 million bags in the 2022 / crop year. 2023, while the market is waiting for the report of the first crop survey results of Conab – Brazil to be published.
USDX’s return to bullish momentum and the prospect of a better US-CPI report due out today, has engulfed New York coffee futures as the reais continues to strengthen at $1 = 5.1810 R$, to the detriment of Brazilian agricultural export prices. Note, the report of reduced coffee exports of FNC – Colombia also did not have much impact on futures prices in New York, as in the last few years most Arabica coffee has been produced by the world’s leading high-quality wet processor. sold directly to the roaster at an exorbitantly high price compared to the forward price.
After the General Statistics Office of Vietnam estimated that Robusta coffee exports for the whole year of 2022 increased by 10.10% compared to the previous year, the preliminary data report of the General Department of Vietnam Customs officially announced the export of whole coffee. in 2022 reached a total of 1,777 million tons, an increase of 13.8% compared to the previous year, also helping to support the market to alleviate concerns about short-term supply shortage.
English (giacaphe.com)
