Coffee prices continue to decline due to the forecast that the supply will be very positive while consumption demand will decline before the world economic recession…
Robusta London chart January 1, 2023 as of November 9, 2022
Ending the session, the price of Robusta coffee on ICE Europe – London dropped for the third consecutive session. Futures for delivery in January decreased by 12 USD to 1,819 USD/ton and term for delivery in March decreased by 8 USD to 1,808 USD/ton, significant reductions. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. December spot futures fell another 1.30 cents to 165.30 cents/lb and March futures fell another 1.80 cents to 162.35 cents/lb, significant losses. Trading volume remained very above average .
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 40,300 to 40,700 VND/kg.
The price of coffee on both exchanges continues to decline when the New York floor expires December 2022 futures options this weekend, November 11 will cause funds and speculators to continue to liquidate and adjust positions. net holding.
Rabobank has just informed its investors about the forecast that Brazil’s coffee production in the crop year 2023/2024 may increase by 10% to 68.25 million bags, due to the recent rainy weather, which is very favorable to coffee trees grow in the 2023 crop. Meanwhile, HedgPoint also forecasts a 10% increase in Brazil’s output next season to 66.2 million bags. The market is waiting for the results of the first survey of the Agricultural Product Supply and Forecast Company (Conab) under the Brazilian Ministry of Agriculture on this crop.
The market awaits October Consumer Price Index (CPI) data, which measures US inflation, to be released today. Last month, this index rose 0.4% after gaining 0.1% in August. This is the number that will be analyzed by the Federal Reserve (Fed) to contribute to the upcoming USD interest rate decision.
The reais fell 0.66%, the exchange rate fell to R$5,1840, reflecting the instability of the world financial markets in the short term and continued to make it difficult for coffee futures to face selling pressure. Exports of leading manufacturers .
As of Monday, November 7, the inventory of Robusta coffee certified and issued by the London floor has increased by 350 tons, or 0.39% from a week earlier, to 90,580 tons (equivalent to 90,580 tons). equivalent to 1,509,667 bags, 60 kg bags).
English (giacaphe.com)
