Coffee futures prices are mixed again as more fundamental factors support…
Robusta chart London 3/2022 session on January 26, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor reversed to decrease again. The March spot futures fell by $19 to $2,218 per ton and the May delivery term fell by $12 to $2,191 per ton, significant reductions. Trading volume quite above average. The island price structure closes the gap.
On the contrary, the price of Arabica coffee on the ICE US floor – New York continued the upward trend. March spot futures added 1 cent to 238.90 cents/lb and May futures added 1.10 cents to 239.25 cents/lb, slight gains. Trading volume below average. The island price structure widens the gap.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 VND, to range from 39,700 to 40,200 VND/kg.
The press conference after the Fed’s policy meeting seemed to emphasize only what was already speculated by the market, with the assertion that the USD base rate increase could only be known at the March policy meeting. This caused the stock exchange’s strong gain at the beginning of the session to slow down, speculators were clearly relieved with the oscillation amplitudes softening. Most of the commodity exchanges that gained strongly in the previous session dropped again.
The New York Stock Exchange continued to increase slightly thanks to the support of declining inventory reports. Notably American Coffee Bean Association (GCA) December inventory report decreased by 2.4% year-on-year and Arabica coffee inventory report due to ICE management fell to a 13-month low.
On the contrary, the London floor dropped again due to speculation that Vietnamese farmers will increase coffee sales to spend for the upcoming Lunar New Year. The market also had a significant impact with the report of Citigroup Vietnam’s output in the next crop year 2022/2023 is forecasted to increase by 5.1% to 33 million bags, continuing to be the world’s largest Robusta coffee producer.
English (giacaphe.com)
