Investors continued to liquidate and switch positions on both futures exchanges right before the Fed meeting…
At the end of the first session of the week, Robusta coffee prices on ICE Europe – London continued to decline. The March spot term decreased by 16 USD to 2,197 USD/ton and the May delivery term decreased by 13 USD to 2,166 USD/ton, significant reductions. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York dropped for the third consecutive session. The March spot futures fell another 4.95 cents to 232.95 cents/lb and the May delivery futures fell another 4.85 cents to 233.25 cents/lb, sharp declines. Trading volume very high above average.
The price of green coffee beans in the Central Highlands provinces decreased by 200-300 dong, to range from 39,200 to 39,700 dong/kg.
Stock exchanges and derivatives simultaneously dropped on speculation that the Fed will raise the basic USD interest rate and cut economic stimulus at a new policy meeting in 2 days from today. The inflows of speculative capital seeking shelter have caused USDX to bounce back and make commodities in general expensive.
Besides, there is also a sign of increased sales from farmers in the world’s first and second largest coffee producers.