Risk aversion remains high as the Fed has to tighten monetary policy to prevent excessive inflation…
Robusta chart London September 2022 session on August 18, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London dropped for the third consecutive session. The September spot futures dropped another $2, to $2,215 per tonne and the November delivery futures dropped another $6, to $2,218 per ton, a slight decrease. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York dropped for the fourth consecutive session. September spot futures fell another 2.75 cents to 214.70 cents/lb and December delivery fell another 2.55 cents to 211.85 cents/lb, significant reductions. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 dong, to range from 47,600 to 48,000 dong/kg.
Coffee futures prices continued to decline as USDX regained momentum, becoming a drag for greenback-traded commodities in general. Operations in most domestic markets are influenced by the psychology of interest rate hikes in the future.
It is not surprising that the price of coffee on the two exchanges continues to decline when the September expiration of the futures contract forces funds and speculators to balance and adjust their net positions because both are in the zone. “overbought” combined with the information that the ICE inventory report has decreased continuously, while the harvest of the Brazilian producer’s crop has entered the final stage and the new crop is ready.
The news that the Brazilian government could sell more than $229 billion in bonds to finance investments in the infrastructure sector and boost the country’s growth caused the Reais to drop slightly by 0.07% to 1 percent. USD = 5,1710 R$ also contributed to promote Brazilians strongly selling coffee.
It is very bad if USDX continues to strengthen, while the Fed will have to tighten monetary policies to prevent inflation, many export traders in producing countries have complained…
English (giacaphe.com)
