The inventory report on both exchanges dropped in a row, promising a very unexpected reversal in coffee futures prices…
Robusta chart London 1/2023 session on October 26, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London dropped for the fourth consecutive session. The January delivery term decreased by 73 USD, to 1,875 USD/ton and the March delivery term decreased by 69 USD to 1,864 USD/ton, very strong reductions. Trading volume quite above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York extended the falling chain to the eleventh session. December spot futures fell another 6.05 cents to 179.75 cents/lb and March 2023 futures fell another 5.20 cents to 177.30 cents/lb, sharp declines. Trading volume remained very high above average .
The price of green coffee beans in the Central Highlands provinces decreased by 1,300 – 1,400 VND, down to the range of 41,200 – 41,700 VND/kg.
USDX continued to decline due to heightened risk aversion as many countries eased exchange rates and raised monetary interest rates to boost international trade, but did not support coffee prices.
China re-isolates part of Wuhan when it detects an increase in covid cases. The US is expected to increase sales of long-term Treasuries to stabilize the currency due to the high USDX, which has put emerging currencies at a disadvantage, reducing the market’s purchasing power.
The reais fell another 1.10% to 1 USD = 5.3820 R$ after the Monetary Policy Committee (Copom – Brazil) announced it would keep interest rates steady at 13.75% per annum until until the end of 2023.
The market is looking forward to the results of the US Gross Domestic Product (GDP) in the third quarter after having declined for the first 2 quarters of the year due to a technical recession and the September Purchasing Managers’ Index (PMI) for the Fed to make a decision. scheduled for next Wednesday.
The new Italian Prime Minister caused a stir in the financial markets in her first speech when she criticized the European Central Bank (ECB)’s tightening of monetary policy, which had affected banks’ credit, creating more burdens. Heavy for business and home.
The Bank of Canada (BoC) has just raised interest rates by 0.5%, for the sixth time in a row this year, to 3.75%/year to control inflation and help prevent an economic recession. world.
According to observers, the continuous decline in coffee futures prices was mainly due to the technical selling of large Hedge funds rather than to the market’s decline in purchasing power, even though the market was concerned about low demand because of the decline in demand. consumers save money. While the inventory level on both exchanges dropped to a record low in a row, it is expected that the futures price of coffee will have a very unexpected reversal.
English (giacaphe.com)
