After Thursday’s panic caused Fed officials to speak to reassure, the market has returned to speculation that the Fed will raise the basic USD interest rate by 0.75% at the upcoming policy meeting…
Robusta chart London September 2022 session on July 18, 2022
Ending the first session of the week, Robusta coffee prices on ICE Europe – London reversed to recover. The September spot term increased by $69, to $1,992/ton and the November delivery term increased by $63, to $1,987/ton, very strong gains. Trading volume above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York continued to increase. September spot futures added 15.40 cents to 215.20 cents/lb and December futures added 14.60 cents to 221.20 cents/lb, huge gains. Trading volume remained very high above average.
The price of green coffee beans in the Central Highlands provinces increased from 1,200 to 1,300 dong, to range from 39,500 to 40,200 dong/kg.
USDX’s continued decline has supported most of the commodity markets’ recovery from last Thursday’s panic.
The price of coffee futures on the two bourses surged sharply, due to concerns that this year’s crop will not meet expectations, causing the harvest progress to be lower than the average for many years. Somar Met. The dry weather report in the past week has the potential to reduce the output of the upcoming crop. The ICE inventory report continues to stand at a more than 22-year low and GCA inventories are just enough to last a roaster for more than 12 weeks, an average figure.
The caution from officials and the fear of a global market downturn has led the market to bet that the Federal Reserve (Fed – US) can raise the basic USD interest rate by 1% at its meeting later this month. Most emerging markets are perceiving USDX too strong which is making it difficult for them to run their national economies.
The G20 group of finance ministers is blaming Russia for the inflation shock they didn’t anticipate. according to Bloomberg.
Cecafé – Brazil reported June exports of 3.144 million bags of coffee beans, up 2.1% year-on-year, not because of higher export volumes, but due to logistics problems and bottlenecks last year. at the world’s import and export ports of goods weigh on the global market in general.
International traders believe that Vietnamese farmers currently hold about 10% of crop output, or about 180,000 tons of Robusta coffee, it is not easy for them to sell at current London futures prices. While the actual amount of goods delivered on board, by the end of June, it only reached 1,018,650 tons, according to preliminary data reported by Vietnam Customs.
English (giacaphe.com)
