The December CPI report showed that US inflation was on the decline, which stimulated most commodities to reverse to increase again…
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to increase. The March spot term increased by $70 to $1,881/ton and the May delivery term increased by $67 to $1,847/ton, extremely strong gains, rarely seen. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. The March spot futures rose 5.50 cents to 149.40 cents/lb and the May delivery futures rose 5.45 cents to 150.15 cents/lb, very strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased from 1,200 to 1,400 dong, to range from 40,800 to 41,400 dong/kg.
Commodity markets rallied strongly after the US Department of Labor reported a December consumer price index (CPI) drop of 0.1% month-on-month, although the result was only approximately what the market expected. However, it has also shown that US inflation has continued to decrease steadily over the past few months, promising that the Fed will end the monetary tightening cycle sooner than expected, and also a motivation for speculation to return to the commodity markets to increase purchase.
USDX continued to decline, investors returned to pour capital into commodity markets as the Chinese market reopened and emerging currencies added value. US stocks reversed up, ending a series of consecutive declines since the beginning of the month, the Reais rate increased by 1.58% to 1 USD = 5,0990 R$, which will encourage Brazilians to reduce selling.
The Central Highlands coffee region of Vietnam continues to have erratic rains, causing farmers to worry about the quality of the new coffee beans that are currently being dried.
English (giacaphe.com)
