DXY’s rise to a 7-week high weighed on most commodity prices, including coffee…
At the end of the weekend trading session, Robusta coffee prices on the ICE Europe – London floor dropped for the third consecutive session. March delivery futures decreased another 50 USD, to 3,237 USD/ton and May delivery futures decreased another 35 USD, to 3,116 USD/ton, very significant reductions. Trading volume is very high above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased by 2.25 cents, to 191.95 cents/lb and May delivery futures decreased by 1.95 cents, to 189 cents/lb, very significant decreases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 300 – 400 VND, fluctuating in the range of 77,700 – 79,000 VND/kg.
After the Fed’s decision not to change the current interest rate, the market was disappointed. Fear of increased risks prompted funds and speculation to accelerate the liquidation of previously “overbought” net positions to increase prices. decreased across commodity exchanges in general. Speculative capital flows strongly to stock exchanges and long-term treasury bonds. DXY increased to a 7-week high, commodity prices became expensive, causing most speculators to withdraw from the markets to wait for more.
The Reais – Brazil currency decreased by 1.06%, bringing the exchange rate to 1 USD = 4.9676 R$, causing Brazilians to boost the sale of exported coffee, causing the price to drop further.
Data reported by the ICE Report Center shows that the inventory level in Europe – London yesterday, Friday February 2, decreased by 2,300 tons, or down 7.65% compared to a week earlier, down to 2,300 tons. The level of 27,780 tons (about 463,000 bags, 60 kg bags) continues to stand at the lowest level since 2014. This will continue to support coffee prices in the short term.
English (giacaphe.com)
