The pressure to expire May futures contracts combined with the possibility that the Fed will strongly raise the basic interest rate in USD has made coffee prices on both exchanges continue to decline…
Robusta chart London May 2022 session on April 13, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. Spot futures in May decreased by 7 USD, to 2,091 USD/ton and the term for July delivery decreased by 6 USD to 2,105 USD/ton, slight decreases. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York trended down. The May spot futures fell another 8.55 cents to 225.05 cents/lb and the July delivery futures fell another 8.40 cents to 225.15 cents/lb, very sharp declines. Trading volume at a “terrible” level, rarely seen.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 40,100 to 40,600 VND/kg.
The pressure to expire in May was the main reason why coffee prices on both futures exchanges continued to decline because speculators were net buyers. “exceed” before.
However, the downward pull from the New York Arabica floor was not strong enough, so speculation on the London Robusta floor still showed hesitation with relatively low trading volume. This shows that the market still needs a lot of coffee “rich in bitterness” for home consumption in difficult economic times, expensive materials.
U.S. stocks reversed gains, after investors weighed inflation at a four-decade high, drawing back speculative capital flows. While the war in Eastern Europe is likely “intense” More than making gold prices, crude oil prices returned to upward momentum, putting coffee futures at a disadvantage.
English (giacaphe.com)
