Copom’s decision to raise the basic interest rate by 0.25% to 13.75%/year has supported Brazilians to reduce coffee sales when the reais rate rose sharply again…
Robusta chart London 11/2022 session on September 22, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to recover. The November spot term increased by $12 to $2,238 per ton and the January 2023 delivery term increased by $13 to $2,225 per ton, slight increases. Trading volume maintain under maverage breast.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures rose 2.25 cents to 223.55 cents/lb and March 2023 futures rose 2.15 cents to 217.25 cents/lb, significant gains. Trading volume quite below average.
The price of green coffee beans in the Central Highlands provinces increased by 100-200 VND, to ranged from 47,700 to 48,300 VND/kg.
Risk aversion increased shortly after the Fed – the US announced the base rate increased by 0.75% as the market had speculated, while Copom – Brazil increased by 0.25% with the aim of maintaining interest rates. base rate at 13.75%/year to soften fluctuations in economic activity and balance risks to future inflation.
Although the markets turned to buy again near the end of the session, coffee futures prices on both exchanges recovered slightly (see price chart)but the very low trade volume shows the caution of speculators as USDX continues to rise close to “all-time high” in the context of recession in China, energy crisis in Europe, uncontrolled inflation in the US, conflict in Ukraine… and the US stock market continued to fluctuate in a negative trend.
The Reais rose 1.14% to 1 USD = 5.1130 R$ also helped support coffee prices as Brazilians reduced selling.
ANhan Van (giacaphe.com)
