USDX continues its rally and other derivatives decline has supported coffee prices…
Robusta chart London 11/2022 session on August 23, 2022
Ending the session, the price of Robusta coffee on ICE Europe – London increased for the third consecutive session. The September spot term increased by $17, to $2,254/ton and the November delivery term increased by $15, to $2,258/ton, significant increases. Trading volume stay above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has the same upward trend. December spot futures added 7.05 cents to 228.25 cents/lb and March 2023 futures added 5.95 cents to 222.40 cents/lb, strong gains. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces increased by 200-300 VND, to ranged in the range of 48,200 – 48,800 VND/kg.
USDX fell slightly after the Fed chair’s statement at the Jackson Hole Conference affirmed that it will maintain the 0.5% interest rate as expected in the upcoming meeting, unless the report data is released much higher than expected. The reais rose 1.25% to $1 = R$5,0990 and reports of dry weather in the main arabica coffee regions southeast of Brazil supported coffee futures prices to maintain their upward momentum and many general goods. Saudi Arabia’s energy minister said that if oil prices continue to fall, they will negotiate with OPEC+ to cut production to get an accurate and reasonable price. The consecutive drop in oil prices supported the recovery of commodities in the futures markets.
The US PMI (manufacturing activity) report in August is expected to reach only 49.3 points, lower than 49.5 points in July, showing that US economic growth is also uncertain. makes the Fed more deliberate.
The market continues to show interest with the ICE inventory report decline and the weather forecast to be dry in Minas Gerais, Brazil’s main Arabica coffee state, as temperatures could rise to more than 30 degrees Celsius. during flowering coffee trees will reduce the yield of the next crop.
As of August 22, the inventory of Robusta coffee that is certified and issued by the London Stock Exchange has decreased by 1,700 tons, or 1.73% from a week earlier, to 96,480 tons (equivalent to 1,608). .000 bags, 60 kg bags) marking the fifth consecutive week of decline.
English (giacaphe.com)
