Commodity markets are still concerned about heightened risk by the possibility that a global recession could take place, prompting the Fed to tighten policy…
Robusta chart London September 2022 session on August 17, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. The September spot futures dropped another $7, to $2,217 per ton, and the November delivery futures dropped another $4, to $2,224 per ton, a slight decrease. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. September spot futures fell another 1.90 cents to 217.45 cents/lb and December delivery also fell another 1.90 cents to 214.40 cents/lb, significant reductions. Trading volume quite above average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 dong, to range from 47,700 to 48,100 dong/kg.
Coffee futures prices continued the negative trend in the face of heightened risk aversion when the Chinese economy is likely to have a further recession as the real estate crisis has not been fully resolved and the policy “zero covid” continued to weigh on the commodity market in general.
Minutes of last month’s meeting released by the Fed brought some relief to markets but kept concerns about a possible global recession that made Wall Street investors more cautious, sending equities The decline in the US and a slight increase in USDX prevented the rise of coffee prices at the beginning of the session, although the report of inventories at the two exchanges continued to decline.
As of Monday, August 15, Robusta coffee inventories certified and tracked by ICE Europe – London have decreased by 1,910 tons, or 1.91% down from a week earlier, to 98,180 tons. (equivalent to 1,636,334 bags, 60 kg bags), while ICE US inventories – New York remained at a 23-year low and did not record any additions other than waiting. “recounting” the quality of some perennial inventory was drawn earlier.
USD increased slightly by 0.52% to 1 USD = 5.1670 R$, leading to speculation that the Fed – US will raise the basic interest rate of USD by 0.5% at the September policy meeting.
English (giacaphe.com)
