The increasing global risk aversion has left most commodity markets in the red…
Robusta chart London 11/2022 session on September 23, 2022
At the end of the last trading session of the week, the price of Robusta coffee on ICE Europe – London reversed to decrease. The November spot term decreased by 6 USD, to 2,232 USD/ton and the term for delivery in January 2023 also decreased by 6 USD, to 2,219 USD/ton, slight decreases. Trading volume maintain under maverage breast.
Similarly, the price of Arabica coffee on the ICE US floor – New York has a downward trend. The December spot futures fell 3.10 cents to 220.45 cents/lb and the March delivery term fell 3.25 cents to 214.10 cents/lb, significant declines. Trading volume very below average.
The price of green coffee beans in the Central Highlands provinces decreased from 0 to 100 dong, to range from 47,700 to 48,200 dong/kg.
Most of the markets reacted negatively after the decision to raise the basic interest rate by a series of major central banks in the world. USDX continues its rally to a 20-year high that has devalued emerging currencies, sending most commodity markets in the red, reflecting the possibility that a global recession is near, leading the way. Europe and the United States, raising risk aversion even further.
Coffee prices dropped in both futures markets due to the absence of speculators due to high interest rates on loans. Meanwhile, sales from Brazil are not small after the harvest of this year’s crop is almost complete, farmers are in need of more space to store new crop coffee. The Reais exchange rate fell another 2.64% to 1 USD = 5,2480 R$, contributing to encouraging Brazilians to promote the sale of coffee by the forward method.
According to observers, the current price of coffee futures does not reflect the actual price in the world coffee market but is only a place used to circulate the speculative capital flows of large commodity funds as well as those of large commodity funds. retail speculators in general. To have ICE-certified bags of coffee, the buyer has to pay an amount much higher than the price listed on the electronic price list.
ANhan Van (giacaphe.com)
