Coffee prices fell due to the fact that central banks raised interest rates on monetary policy to help prevent the global economic recession and excessive inflation…
Robusta chart London September 2022 session on 22/07/2022
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London continued to decline. The September spot futures dropped another $25, down to $1,962/ton and the November delivery futures dropped another $24 to $1,960/ton, significant reductions. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also continued to decline. September spot futures fell another 9.15 cents, to 206.70 cents/lb and December futures fell another 9.10 cents, to 202.65 cents/lb, very strong declines. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 300-400 VND, to range from 39,200 to 39,800 VND/kg.
After European Central Bank (ECB) the decision to raise the euro base interest rate by 0.5%, higher than the initial estimate of 0.25%, is considered quite drastic in helping to prevent inflation, although it has little impact on inflation. Inflation in the Eurozone is at an all-time high of 8.7%. The long-term yield on US Treasuries fell after a fairly long period of standing at over 3% indicating “green silver coin” is a safe haven for speculative capital flows in the face of an economic recession that will make the Fed consider the expected 0.75% interest rate..
Coffee prices on both exchanges dropped again when the Reais continued to weaken at 1 USD = 4,990 R$, recording a decrease of 1.74% in the past week. Follow Barchart.com, Coffee futures prices fell sharply on speculation that Brazilians would increase sales of new-crop coffee because they are enjoying higher profits, before the possibility that both the Fed – US and Copom – Brazil will raise interest rates at the meeting. policy at the end of next week. What can stop it when Brazil is harvesting a cyclical coffee crop? “two years one”.
English (giacaphe.com)
