Commodity prices simultaneously plunged as investors expressed pessimism in most markets…
Robusta chart London September 2022 session on 14/07/2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor weakened again. The September spot futures fell by $51 to $1,930 per tonne and the November delivery term fell by $44 to $1,935 per ton, very strong declines. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. September spot futures fell 12.05 cents to 195.30 cents/lb and December futures fell 11.95 cents to 192.75 cents/lb, huge reductions. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 600-700 VND, to range from 38,800 to 39,400 VND/kg.
Commodity prices simultaneously plunged on fears of a global recession amid high inflation and the possibility of Fed – US USD interest rate hike is higher than expected, this environment has caused pessimism among investors across financial markets. In particular, the scenario of global inflation and recession has negatively impacted the banking and financial sectors “led to general pessimism in the market.” USD increased by 0.51%, to the level of 1 USD = 5.4370 R$.
According to observers, most of the market is expecting the Fed to raise the USD base rate by 0.75%, but there are analysts who have bet on a 1% increase. Meanwhile, China news continues “close the door” and concerns about the real estate crisis and negative outlook in Europe contributed to the sharper decline in commodity prices.
Copam – Brazil is expected to raise the reais base rate by 1% at the policy meeting later this month.
Weather report from Somar Met. said that by the end of this week there will be a cold air mass entering the coffee growing region in southern Brazil making the weather dry but will not be likely to cause frost.
English (giacaphe.com)
