Concerns about supply shortage continue to support the uptrend…
At the end of the session, the price of Robusta coffee on ICE Europe – London tended to be mixed. Futures for delivery in January increased by 31 USD to 1,946 USD/ton and term for delivery in March increased by 1 USD to 1,878 USD/ton, while futures for delivery decreased slightly. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued to increase for the fourth session. The March spot futures added 3.60 cents to 171.75 cents/lb and the May delivery futures added 3.15 cents to 171.65 cents/lb, strong gains. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces remained unchanged, still fluctuating in the range of 41,200 – 41,700 VND/kg.
The coffee futures markets continued to move with two distinct trends, continuing the rally in New York and relatively stable in London. Inventory information from ICE – New York is still at a 23-year low and the weather in the main coffee regions in southeastern Brazil is too much rain which will inundate many farms and be detrimental to fruit development. in the new crop of 2023. In addition to the report of the fourth 2022 crop survey by Conab – Brasil and the assessment of the new crop of 2023/2024, the assessment is higher than the 2021 crop but slightly lower than that of the 2021 crop. with the 2022 crop and the forecasts of many other international organizations and traders. Official numbers for the 023/2024 crop will be released in January 2023. This information has continued to support New York prices to maintain a positive trend in the short term.
Funds and speculators continued to adjust and balance their positions before the expiry date of December futures contracts on both exchanges with the slight impact of the Federal Reserve (Fed – US) raising USD interest rates. by 0.5% along with the euro interest rate increase by 0.5% of the European Central Bank (ECB) as well as of banks of other countries.
However, the fear of a recession in the world economy is still the current drag on commodity markets in general.
English (giacaphe.com)
