US GDP in the third quarter increased by 2.6%, raising concerns that the Fed will sharply tighten monetary policy at its executive meeting next week…
Robusta chart London 1/2023 session on October 27, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London tended to be mixed. Futures for delivery in January increased by 3 USD to 1,878 USD/ton and term for delivery in March was unchanged, remaining at 1,864 USD/ton, while futures for delivery decreased slightly. Trading volume on average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a mixed trend. December spot futures fell another 0.90 cents to 178.85 cents/lb, and March 2023 futures fell another 0.350 cents to 177.30 cents/lb, while forward futures all rose. light. Trading volume remained very high above average .
The price of green coffee beans in the Central Highlands provinces increased from 0 to 100 dong, to range from 41,200 to 41,800 dong/kg.
Coffee prices on both exchanges corrected up at the beginning of the session, but markets could not keep their upward trend near the end of the session when it reported that the US Gross Domestic Product (GDP) in the third quarter reached 2.6%. month-on-month, much higher than market expectations and signaling a drop in inflation. This will help the Fed to be strong in managing the currency at the policy meeting next week. Risk aversion is high again with USDX reversing to increase, long-term US Treasury yields above 4%, prompting Funds and speculators to rush to withdraw capital from commodity markets. Coffee price “turn the car” Near the end of the session, there was also a contribution from the European Central Bank (ECB)’s decision to raise interest rates by 0.75% and cut support for National Banks in the Eurozone, causing the Euro to drop slightly. after having previously recovered significantly.
Rising interest rates, declining consumption, and abundant supply as many major coffee producing countries enter the new crop season of coffee year 2022/2023, making many funds and speculators shy to hold. net long position.
While the world’s largest consumer of goods has just partially blocked Wuhan under the policy “zero covid” because there are signs of contagion also contribute to negative commodity in general.
Investment bank Rabobank has just forecast that the price of Robusta coffee will recover to $ 2,000 in the first quarter of 2023 due to the demand of the consumer markets for this type of coffee. “rich in bitterness” cheaper and higher.
English (giacaphe.com)
