The price of coffee on the two floors was mixed in a session of USDX dropping and the news that the new British Prime Minister left the hot seat…
Robusta chart London 11/2022 session on October 20, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London reversed to recover. The November spot term increased by 33 USD, to 2,045 USD/ton and the term for delivery in January 2023 increased by 41 USD, to 2,041 USD/ton, strong increases. Trading volume remained very high above average.
In contrast, the price of Arabica coffee on the ICE US floor – New York dropped for the seventh consecutive session. December spot futures fell another 1.25 cents, to 191.05 cents/lb, and March 2023 futures fell another 0.85 cents to 186.40 cents/lb, slight declines. Trading volume very above average.
The price of green coffee beans in the Central Highlands provinces increased by 600-700 VND, to ranged in the range of 44,400 – 44,800 VND/kg.
Robusta coffee price recovered strongly thanks to technical buying after falling into the zone “oversold” and USDX reversed to decline, as Wall Street investors adjusted their portfolios due to heightened risk aversion, causing US stocks to end the session in the negative territory. This also contributed to the price of Arabica coffee extending the chain down. While the pound rose slightly after the news that the new British Prime Minister announced his resignation after more than a month in charge of the country amid many uncertainties in the economy, double-digit inflation and the risk of a prolonged recession. long.
Although the Brazilian Reais exchange rate increased by 1.08% to 1 USD = 5,2180 R$, causing Brazilians to reduce selling, the selling power on the New York Stock Exchange was still very significant due to the selling pressure of the new crop from Brazil. and the production of high-quality wet-processed Arabica coffee Colombia, Mexico – Central America also began to harvest the new early-ripening crop in the lowlands of the coffee year 2022/2023. Nor does it exclude the adjustment pressure, balancing speculative positions before the expiration date of November futures contracts on both exchanges.
Note, wet-processed Arabica coffee is the main source of goods on the New York floor. Brazil’s semi-washed Arabica coffee was recently approved to be put on this floor for auction with a fixed discount of 10 cents/lb after decades of negotiations because of quality issues.
English (giacaphe.com)
