The greenback was so strong that made goods expensive…
Robusta chart London T11/2022 session on September 7, 2022
At the end of the session, the price of Robusta coffee on the ICE Europe – London floor reversed to decrease. The November delivery term decreased by 24 USD, to 2,238 USD/ton and the delivery term in January 2023 also decreased by 24 USD, to 2,223 USD/ton, significant reductions. Trading volume below average.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. The December spot futures fell 7.00 cents to 223.25 cents/lb and the March 2023 delivery futures fell 6.30 cents to 217.35 cents/lb, very strong declines. Trading volume remain above average.
The price of green coffee beans in the Central Highlands provinces decreased by 400-500 VND, to range from 47,700 to 48,300 VND/kg.
Coffee prices reversed their decline in a session when USDX set a 20-year high, prompting commodity investors in general to rush out of the market. Meanwhile, crude oil prices continued to rise as Russia blocked the gas pipeline through Europe in a drastic move to help quell the counter-offensive in southern Ukraine and market expectations for the interest rate session. of the European Central Bank (ECB) today. The reais fell 1.66% to 1 USD = 5,2390 R$ on the day the Brazilian market closed for Independence Day on September 7.
US stocks fell before the market closed after a continuous reversal session reflecting the positive impact of recent US economic data on Wall Street with the possibility that the Fed will be more aggressive at the policy meeting. September. A strong USD will cause the market to reduce purchasing power because commodity prices become expensive.
In a notice to customers, investment bank Rabobank has revised down the global coffee supply by 1.92% in the 2022/2023 crop year to 169 million bags while keeping global demand unchanged. demand at 170.30 million bags. As a result, a global supply shortfall of 1.3 million bags, if substantiated by market data, should support coffee futures prices in the coming months.
ANhan Van (giacaphe.com)
