Fear of supply shortages from leading producing countries pushed coffee prices up hot on both exchanges…
Robusta chart London T11/2022 session on August 24, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London exchange continued the fourth session’s increase. The September spot term increased by $86, to $2,340/ton and the November delivery term increased by $90 to $2,348/ton, extremely strong gains. Trading volume at a “terrible” level, rarely seen.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures increased by 10.75 cents, to 239.00 cents/lb, and March 2023 delivery added 9.85 cents to 232.25 cents/lb, very strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 1,200 – 1,300 VND, to ranged in the range of 49,500 – 50,100 VND/kg.
The inventory report on the two exchanges continued to decline, while traders did not want to bring coffee to the two exchanges to register for auction because the price in the external import markets was more attractive. This situation is not easy to change if the price in the futures markets does not have a possible change, the hot price increase in the past session has such meaning.
Brazilians are busy harvesting Arabica coffee in the final stage, the new crop will be ready by the beginning of September, while the Reais exchange rate continues to improve, making them not interested in selling coffee at this time. . Robusta coffee in Vietnam’s domestic market seems to have dried up now, and exporters do not want to bring coffee to ICE – Europe warehouses to register for auction because logistics costs are too expensive.
Weather news continues to be dry in central Brazil, temperatures could be higher than 30 degrees Celsius, even with scattered thunderstorms, which will affect the flowering of Conilon Robusta coffee regions in Espírito Santos and Bahia.
Consultant-analyst Safras & Mercados believes that this year’s Brazilian coffee production will fall short of the forecast of 61.1 million bags as a result of last year’s frosts and droughts.
USDX rebounded strongly in the basket of currencies, making the goods exchanged in greenback more expensive, while the market speculated that the Fed would strongly raise the basic interest rate at the September policy meeting when US inflation was still low. peaked with reports of economic indicators still at the level that cannot be optimistic.
English (giacaphe.com)
