The selling pressure of the new crop from the main producing countries is still weighing on the markets, while the Funds and speculators have not yet stepped up to buy due to the increasing interest rates…
London Robusta chart January 1/2023 session on November 1, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor weakened again. Futures for delivery in January decreased by 14 USD to 1,839 USD/ton and term for delivery in March decreased by 13 USD to 1,827 USD/ton, significant reductions. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also tended to decrease. December spot futures fell 3.10 cents to 174.60 cents/lb and March delivery fell 4.40 cents to 170.20 cents/lb, the gains and losses were quite strong. Trading volume remained very high above average .
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 dong, to range from 40,500 to 41,000 dong/kg.
The price of coffee reversed and fell again due to the fear of high monetary interest rates, so investors were not interested in buying, while traders continued to be net sellers when the new crop started to appear abundant, especially The difference in the volume of goods delivered to the two floors for auction registration has shown signs of increasing.
Commodity markets are under pressure from the Fed’s policy meeting taking place on Tuesday and Wednesday this week. The US economic data proved to be very positive for the Fed to tighten monetary policy strongly with the speculation that this time it will raise the USD interest rate by 0.75% due to the still high inflation level and the risk of economic recession. the world economy is getting worse and worse.
The strike by truckers to block the interstate highways in Brazil due to high gasoline prices has somewhat eased. This will help the flow of agricultural goods delivered to export ports have been favorable again, while the reais increased by 1% to at R$5,1120 will not support export agricultural sales. It seems that the executives in China are looking to loosen the policy “zero-covid” when there are too many disadvantages for the commodity market in general.
Indonesian government trade data shows that Robusta coffee exports from Sumatra island in September reached 887,810 bags, up 136.02% year-on-year, bringing coffee exports in the first six months of the year. The current crop (April 2022 – March 2023) totaled 2,356,921 bags, an increase of 59.33% over the same period last year.
English (giacaphe.com)
