USDA reports that the increase in global coffee production in the 2022/2023 crop year is the main reason for pushing coffee futures prices back into negative territory…
Robusta chart London September 2022 session on June 24, 2022
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London continued to decline. The September spot term decreased by 42 USD, to 2,044 USD/ton and the November delivery term decreased by 39 USD to 2,037 USD/ton, very strong reductions. Trading volume very above average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also continued to decline. September spot futures fell another 5.75 cents to 223.25 cents/lb and December futures fell another 5.80 cents to 221.45 cents/lb, sharp declines. Trading volume above average.
The price of green coffee beans in the Central Highlands provinces decreased by 700-800 VND, down to the range of 40,000-40,500 VND/kg.
Coffee futures prices reversed and dropped after the pressure from USDA’s abundant supply report made speculation hastily cut their current net positions.
On Thursday, The Foreign Agricultural Service (FAS) of the United States Department of Agriculture (USDA) publishes a biennial report on global coffee supply and demand.. According to the report, the global production forecast in the new coffee crop 2022/2023 will increase by 4.7% from the previous crop to 174.95 million bags, mainly due to the Brazilian Arabica crop in the production year. cyclically high amount “two years one”. USDA also forecasts that global coffee stocks at the end of the coffee year 2022/2023 will increase by 6.3% to 34.70 million bags.
Adding support to the downtrend is the Reais-Brazil exchange rate continuing to fall to a 4 and a half month low (1 USD = 5,2520 R$) encouraged Brazilians to boost sales of the new crop currently being harvested.
English (giacaphe.com)
