Fear of increased risks when the market has more bad fundamental information has pushed coffee futures prices into a disadvantageous position, causing funds and speculation to continue liquidating their net holdings…
At the end of the trading session, Robusta coffee prices on ICE Europe – London continued to decline. March delivery futures decreased another 49 USD, to 2,755 USD/ton and May delivery futures decreased another 45 USD, to 2,687 USD/ton, quite sharp drops. Trading volume remains below average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased by 3.90 cents, to 186.25 cents/lb and May delivery futures decreased by 3.55 cents, to 184.10 cents/lb, the drops are also quite strong. Trading volume remains above average.
The price of green coffee in the Central Highlands provinces decreased by 900 – 1,000 VND, fluctuating in the range of 66,100 – 66,900 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
Coffee futures prices continued to decline right after the Fed announced the minutes, causing DXY to grow again, putting emerging currencies at a disadvantage, fear of increased risks causing funds and speculation to continue to liquidate. net position on both world coffee futures exchanges.
The Reais-Brazil exchange rate still stands at its lowest level in 2 weeks with 1 USD = 4.9151 R$, encouraging Brazilians to promote export coffee sales, while the November trade report of the Coffee Organization International (ICO) shows that global coffee exports in November increased by 4.1% over the same period to 10.61 million bags and coffee exports in the first two months of the current crop year 2023/2024 increased by 3 .1% over the same period up at 20.25 million bags also put pressure on prices.
In addition, information about rain in the main coffee regions in the south of Brazil also contributed to supporting the downward price trend, despite statements by shipping lines that they will increase freight rates when they are forced to go around the Cape. Good Hope in South Africa has a longer route and costs more money and time.
English (giacaphe.com)
