The belief that the Fed will soon cut interest rates has helped the market maintain purchasing power…
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 28 USD, to 3,307 USD/ton and futures for delivery in July increased by 23 USD, to 3,198 USD/ton, very significant increases. Trading volume remains below average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same increasing trend. May delivery futures increased 0.90 cents, to 185.90 cents/lb and July delivery futures increased 0.95 cents, to 184.10 cents/lb, slight increases. Trading volume is quite above average.
The price of green coffee in the Central Highlands provinces increased by 400 – 500 VND, fluctuating in the range of 91,200 – 91,900 VND/kg.
The US inflation report above expectations has led Wall Street investors to speculate that the Fed will aggressively cut interest rates at the upcoming meeting, attracting speculative capital flows back to commodity markets and rising stocks. buy.
Coffee futures prices recovered after a long hesitant fluctuation right from the beginning of the session due to the closing date for business positions. Only when appropriate economic indicators triggered automatic buy orders did coffee futures prices return to an upward trend on the two exchanges.
According to observers, coffee futures prices are also supported by data reporting that ICE inventories are still around low levels and reports of reduced exports from Vietnam and Ethiopia. The Coffee Exporters Association (Cecafé) in Brazil reports that exports in the first eight months of the current 2023/2024 crop year have increased by nearly 50%, although coffee shipments to consumer markets remain stagnant. at main export ports.
While recent rains continue to put downward pressure on prices in futures markets, concerns about supply shortages remain in the short term.
English (giacaphe.com)
