The market expressed concern that the Fed will tighten monetary policy strongly after reporting higher-than-estimate US inflation…
Robusta chart London T11/2022 session on October 14, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London continued to decline. The November spot term decreased by 43 USD, down to 2,099 USD/ton and the term for delivery in January 2023 decreased by 44 USD to 2,097 USD/ton, sharp declines. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. The December spot futures fell 7.60 cents to 202.15 cents/lb and the March delivery term fell 5.35 cents to 196.05 cents/lb, very strong declines. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 700-800 VND, to range from 45,500 to 46,200 VND/kg.
Coffee prices on both floors plunged after the US consumer price index (CPI) report in September was higher than expected, US inflation reached 8.2% higher than estimated. It seems that the market is sure that the Fed will strongly tighten monetary policy at the upcoming policy meeting, making all electronic price lists covered in red when the market is scared with worries about higher interest rates. However, near the end of the session, the green color appeared again, but forgot two derivative coffee floors because it fell too deeply. Arabica coffee prices fell to a 3-month low, while Robusta prices also retreated to 2-month lows.
Meanwhile, after the historic sell-off, the Bank of England (BoE) is about to end its emergency long-term bond buying program on Friday as announced, helping the British Pound to recover slightly in the near future. current financial storm. European stocks remained stable. The ECB announced it would provide random support to the bond market.
The recovery of derivatives markets near the end of the session promises to stimulate funds and speculators to soon return to the two futures floors to buy when prices are at low levels.
As of Monday, October 10, the inventory of Robusta coffee certified and tracked by the London floor has decreased by 1,060 tons, or 1.12% from a week earlier, to 93,840 tons. equivalent to 1,564,000 bags, 60 kg bags) recorded the first week of decline again after 4 consecutive weeks of increase.
English (giacaphe.com)
