The recent USD value correction comes amid global market turmoil as the US and Chinese economies decelerate with the risk of recession…
Robusta chart London September 2022 session on 15/07/2022
Ending the last session of the week, Robusta coffee prices on ICE Europe – London continued to weaken. The September spot term decreased by 7 USD to 1,923 USD/ton and the November delivery term decreased by 11 USD to 1,924 USD/ton, significant reductions. Trading volume below average.
On the contrary, the price of Arabica coffee on the ICE US floor – New York reversed to recover. September spot futures rose 4.50 cents to 199.80 cents/lb and December futures rose 3.85 cents to 196.60 cents/lb, strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 38,300 to 38,900 VND/kg.
A drop in USDX helped most commodities regain some of the previous session’s losses after a Fed official went on air to reassure investors that they were over-speculating without thinking about the nature of the currency. “two-sided” of raising the basic interest rate and tightening the economy again of most central banks in the world today.
While ICE – New York’s Arabica inventory report fell to a 23-year low and Cecafé – Brazil reported a slight increase in June exports of only 0.6% year-on-year, supporting a reversal in Arabica prices. recuperate. A report from the traditional high-quality Arabica production block in Mexico – Central America said that the supply of this block currently seems to have been exhausted, without a significant volume of goods being delivered to export ports. North American roasters now have to buy instant coffee at sky-high prices…
In contrast, export coffee prices from the main Robusta producers remained stable with a significant minus (Dif.) difference in the range of $100-$120/ton from London futures due to problems with the London futures. logistics is still not clear.
Inflation reports in the eurozone countries are more serious than expected, combined with the energy crisis and war in Eastern Europe that will not abate, will cause an unpredictable recession for the region. this. While the report of US economic indicators is somewhat optimistic compared to the fear of high inflation, it is contradictory in putting pressure on interest rates. USD fell 0.49%, down at 1 USD = 5,4050 R$.
According to observers, the recent correction in the USD is due to market exaggeration in the deceleration of leading economies such as the US and China which has left global markets seemingly chaotic with the risk of recession. . This is a bad trend as many economies will not be able to control their domestic finances.
English (giacaphe.com)
