Excited by the Fed chairman’s statement that the United States will cut interest rates this year, most markets have been covered in immense green… London coffee futures prices are no exception when orders to buy carefully Technology has pushed prices up.
At the end of the trading session, Robusta coffee prices on ICE Europe – London exchange returned to an upward trend. Futures for delivery in May increased by 129 USD, to 3,309 USD/ton and futures for delivery in July increased by 114 USD, to 3,214 USD/ton, extremely strong increases. Trading volume is very high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. May delivery futures increased by 2.95 cents, to 186.30 cents/lb and July delivery futures increased by 2.60 cents, to 184 cents/lb, quite good increases. Trading volume is quite above average.
The price of green coffee in the Central Highlands provinces increased by 1,400 – 1,500 VND, fluctuating in the range of 88,400 – 90,100 VND/kg.
The Fed Chairman affirmed before the US Congress the possibility of cutting interest rates this year, while the Jolts employment data report in January increased compared to the previous month and ADP research showed that in February the sector The private sector created 140 thousand new jobs, slightly lower than expectations, but demonstrated solid growth in the world’s leading economy, a basis for the Fed to cut interest rates without necessarily cutting interest rates. Expect inflation to reach 2%, demonstrating flexibility to satisfy the market and boost blue-chip stocks, causing the stock market to skyrocket. Meanwhile, the Chinese Government announced that it would issue ultra-long-term bonds worth 1 trillion yuan (about 139 billion USD) to increase GDP growth to 5%/year, also making Wall Street investors excited. Initially, DXY dropped up to 0.4% which supported most of the markets covered in immense green.
Robusta coffee prices skyrocketed due to concerns about a decline in Asian supply. Indonesia reported a 79.73% decrease in January exports over the same period, bringing exports for the first 10 months of the current coffee season (from April 2023 to March 2024) to a total of only 1,935. 960 bags, a decrease of 2,687,457 bags, or a decrease of 60.72% compared to the same period last crop year. The General Statistics Office of Vietnam estimates that coffee exports in February will only reach 160 thousand tons, down nearly 20% over the same period, due to the extended Lunar New Year holiday in Giap Thin year. The Vietnam Coffee and Cocoa Association (Vicofa) estimates that the current 2023/2024 crop production will decrease by another 10% compared to the previous crop. While the price of coffee in Vietnam’s domestic market is currently very difficult to buy, traders have to push the price up very high, adding 220 – 280 USD/ton compared to the futures price to buy goods.
ICE – Europe’s reported data shows that the Robusta coffee inventory certified and monitored by the London exchange yesterday, Wednesday March 6, decreased by another 1,180 tons, or a decrease of 4.81% compared to a year ago. The previous week, down registered at 23,350 tons (about 389,167 bags, 60 kg bags) continuing to stand at a low level since 1014.
English (giacaphe.com)
