The market continues to worry when the report of US economic indicators continues to weaken, which will cause the Fed to be more aggressive…
Robusta chart London T11/2022 session on September 14, 2022
At the end of the session, the price of Robusta coffee on ICE Europe – London dropped for the fourth consecutive session. The November spot term decreased by 9 USD, down to 2,230 USD/ton and the term for January delivery in January 2023 decreased by 11 USD to 2,219 USD/ton, slight decreases. Trading volume stay below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York also extended the chain of decline. December spot futures fell another 5.85 cents to 214.85 cents/lb and March 2023 futures fell another 5.30 cents to 210.15 cents/lb, very strong declines. Trading volume quite above average.
The price of green coffee beans in the Central Highlands provinces decreased by 100-200 VND, to range from 47,700 to 48,200 VND/kg.
Only after reporting an increase in the US CPI in August, Wall Street’s assets have evaporated hundreds of billions of dollars due to a massive sell-off in stocks. Combined with a strike by hundreds of thousands of Federal Railroad workers this week that threatens to push inflation even higher as negotiations between rail companies and unions have yet to reach an agreement.
Arabica coffee prices continued to decline as speculation continued to be strong net sellers due to concerns that interest rates might be higher in the near future when the 1% increase has begun to attract more attention from the market. Besides, there are still many opinions that the Fed’s strong hand can stifle economic growth, increasing the risk of a serious recession. Anyway, the US stocks bounced up and the USDX dropped slightly, suggesting that the market is trying to weather the crisis at the moment.
Meanwhile, the decline in Robusta coffee prices proved to be softer due to the increasing demand for bitter-rich coffee, while Vietnam’s supply seems to have been exhausted, and Brazilian and Indonesian producers have the advantage. dedicated raw materials to the nation’s instant coffee industry. Even if the report of Robusta inventories at the floor increased by 240 tons in the first day of the week, it could not cause the London market to fall as deeply as New York because the inventory level decreased for 8 consecutive weeks, currently at 88,850 tons (about 1,480 million tons). bag), a rare low.
According to analysts, the Robusta – London market is facing a psychological level of $ 2,200 right before the new coffee year 2022/2023, which also makes speculation soon return to buy.
English (giacaphe.com)
