DXY rose to a 3-month high, causing funds and speculation to push for widespread liquidation because the prices of most commodities have become too expensive…
At the end of the first trading session of the week, Robusta coffee prices on the ICE Europe – London exchange continued a downward trend. March delivery futures decreased another 49 USD, to 3,188 USD/ton and May delivery futures decreased another 48 USD, to 3,068 USD/ton, very significant reductions. Trading volume remains well above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased another 2.45 cents, to 189.50 cents/lb and May delivery futures decreased another 2.30 cents, to 186.70 cents/lb, very significant decreases. Trading volume remains well above average.
The price of green coffee in the Central Highlands provinces decreased by 900 – 1,000 VND, fluctuating in the range of 76,800 – 78,000 VND/kg.
Funds and speculation continued to liquidate their net positions due to being “overbought” after disappointment in the US Federal Reserve’s (Fed) decision not to change the current interest rate, causing increased risk concerns that have caused most All commodity prices decline. While the fundamentals of the coffee futures markets have not changed, some Brazilian 2022/2023 crop production forecasts continue to be released, showing that most are higher than forecasts. by Conab. Most recently, consultant and analyst Safras & Mercados has increased its estimate of Brazil’s 2022/2023 coffee production to 61.1 million bags compared to the previous estimate of 58.9 million bags.
DXY rose to a 3-month high after US economic index reports showed that the world’s leading economy is still growing very optimistically, resulting in long-term US Treasury bond yields increasing 4% after when the Fed Chairman stated that there would not be 6 more consideration cuts in interest rates by 2024 as the market expected.
The Reais – Brazilian currency decreased by 0.27%, bringing the exchange rate down to 1 USD = 4.9811 R$ due to concerns that the Fed will take longer than the market expected to start cutting basic interest rates, contributing to The part helps Brazilians boost export coffee sales because they will earn more local currency, while dry conditions in growing areas continue to support coffee prices in the Brazilian domestic market.
English (giacaphe.com)
