Risk concerns increased after the US Department of Labor’s November jobs report, causing DXY to rise to a 3-week high, has prompted speculation on coffee futures exchanges to liquidate net holdings…
At the end of the weekend trading session, Robusta coffee prices on the ICE Europe – London exchange reversed and decreased. The January delivery term decreased by 20 USD, to 2,569 USD/ton and the March delivery term decreased by 15 USD, to 2,526 USD/ton, very significant reductions. Trading volume is average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased by 0.35 cents, to 177.15 cents/lb and May delivery futures decreased by 0.15 cents, to 175.50 cents/lb, slight decreases. Trading volume remains above average.
Today’s green coffee price in the Central Highlands provinces decreased by 200 – 300 VND, fluctuating in the range of 60,000 – 60,600 VND/kg. Fresh coffee prices are still trading around 12,800 VND/kg.
The US Department of Labor reported that November employment was higher than the market expected, leading to speculation that the Fed would still be aggressive in tightening monetary policy, causing risk concerns to increase and DXY to rise to low levels. 3-week high, causing speculative capital to be withdrawn from commodity exchanges and transferred to stocks.
The coffee price adjustment on the two floors was also due to speculation in liquidating net positions after the October Trade Report of the International Coffee Organization (ICO) showed an increase in global exports. The Brazilian Institute of Geography and Statistics (IBGE) also adjusted its estimate of Brazil’s 2023 crop output to increase, even though the “two-year” cycle of Arabica coffee yields is low.
English (giacaphe.com)
