Investors worry about rising USD interest rates, high inflation and slowing global growth…
New York Arabica chart July 2022 session on May 2, 2022
At the end of the trading session alone at the beginning of the week, the price of Arabica coffee on the ICE US floor – New York reversed to decrease. July spot futures fell 6.20 cents to 215.90 cents/lb and September futures fell 6.05 cents to 215.85 cents/lb, sharp declines. Trading volume on average.
The price of green coffee beans in the Central Highlands provinces is adjusted down by 100-200 VND, to range from 40,600 to 41,200 VND/kg.
The price of Arabica coffee on the New York Stock Exchange dropped due to speculation on liquidation, cutting positions because of heightened risk aversion when the Fed – US and Copom – Brazil will have a monetary policy meeting this week with speculation that it will strongly raised the basic interest rate to prevent high inflation.
China, the world’s largest consumer of goods, currently maintains the policy “Zero covid” causing economic activity to slow down, an unfavorable trade environment, and a decline in commodity prices in general.
Meanwhile, the Reais exchange rate plummeted by 2.60%, down to 5.0720 = 1 USD, also spurred Brazilians to sell coffee strongly because they would gain more local currency.
The appreciation of the USD means that the price of goods becomes more expensive, which inhibits purchasing power.
English (giacaphe.com)
