Risk aversion increases over the possibility that the Fed will tighten the economy for a long time to achieve the goal of slowing down inflation…
At the end of the first session of the week, the price of Robusta coffee on ICE Europe – London reversed to increase. Futures for delivery in January increased by 11 USD to 1,899 USD/ton and term for delivery in March increased by 10 USD to 1,856 USD/ton, significant increases. Trading volume remained at an average level.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. The March spot futures were unchanged, remaining at 162.60 cents/lb and the May delivery futures were up 0.05 cents to 163.25 cents/lb, very slight gains. Trading volume is below average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, to range from 41,000 to 41,700 VND/kg.
Coffee futures prices reversed to increase cautiously when the certified inventory report data at the two exchanges had significantly improved.
According to a report by Safras & Mercados, from the Secretariat of Foreign Trade (Secex) data, Brazil exported 3,607,395 bags of coffee beans in November, up 17.4% over the same period last year. This has caused the uptrend on the Arabica coffee floor in New York to stall due to the caution of speculators.
Risk aversion further increased after the somewhat upbeat US November Payrolls report, with the possibility that the Fed will maintain its prolonged economic tightening policy to hit its target of pushing back inflation, has kept yields on the US dollar. Long-term US Treasuries spiked again and the stock market continued to fall.
English (giacaphe.com)
