Fears that the Asia-Europe maritime transport route will be disrupted have caused commodity prices to skyrocket…
At the end of the trading session, the price of Robusta coffee on ICE Europe – London floor reversed and skyrocketed. January delivery futures increased by 136 USD, to 2,960 USD/ton and March delivery futures also increased by 136 USD, to 2,932 USD/ton, extremely strong increases. Trading volume is very high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. March delivery futures increased by 11.30 cents, to 202.40 cents/lb and May delivery futures increased by 11.55 cents, to 199.60 cents/lb, the increases are also extremely strong. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces increased by 2,500 – 2,700 VND, fluctuating in the range of 68,900 – 69,400 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
Coffee futures prices on both exchanges suddenly soared near the end of the session when information that the international maritime route through the Suez Canal was attacked by Houthi terrorists forced the Europe-Asia shipping route to change direction to go around the Cape of Good Hope. South Africa has high transportation costs in the context of crude oil prices at risk of rising sharply again due to the possibility of OPEC+ cutting production. Markets are concerned about the decline in Robusta coffee production in the Southeast Asia region, with Vietnam down 3.8 million bags and Indonesia down 2.15 million bags, while hot and dry weather conditions in Brazil have not really improved. improved, although demand remained steady and data reporting ICE inventories at a 24-year low continued to provide support.
Meanwhile, DXY turned down with a signal of no interest rate hike in the US, causing commodities to settle “greenback” become expensive due to the decline in the value of emerging currencies, contributing to high commodity prices. The Brazilian market also increased in price when the Reais increased by 0.83%, raising the exchange rate to 1 USD = 4.8631 R$, preventing Brazilians from selling coffee for export.
English (giacaphe.com)
