Funds and speculation are stepping up liquidation to hedge against risks before the long Christmas weekend…
At the end of the weekend trading session, Robusta coffee prices on the ICE Europe – London exchange reversed and decreased. The March delivery term decreased by 127 USD, to 2,837 USD/ton and the May delivery term decreased by 104 USD, to 2,766 USD/ton, very sharp decreases. Trading volume is average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. March delivery futures decreased 0.8 cents, to 192.80 cents/lb and May delivery futures decreased 0.85 cents, to 190.25 cents/lb, slight decreases. Trading volume is average.
The price of green coffee in the Central Highlands provinces decreased by 1,900 – 2,000 VND, fluctuating in the range of 67,000 – 68,000 VND/kg. Fresh coffee prices trade around 15,000 VND/kg.
Robusta coffee prices reversed and dropped sharply on the first announcement day (FND) as funds and speculation stepped up liquidation to hedge against risks before the long Christmas weekend. Speculative capital flows shifting to haven assets have pushed gold prices soaring. While the market expects the Fed to start the interest rate cutting cycle from March due to solid US economic index reports and better-than-expected PCE inflation, DXY continues to trend down to low levels. lower.
The semi-annual report of the Foreign Agricultural Service (FAS) under the US Department of Agriculture (USDA) has adjusted to increase the output forecast of some of the main Arabica coffee producing countries in the world such as Brazil, Colombia and Ethiopia have led to global coffee production in the 2023/2024 crop year increasing by 4.19% compared to the previous forecast, up to 171.40 million bags. This number will compensate for the decrease in output of Indonesia, the main Robusta producing country in Southeast Asia will decrease by 2.15 million bags, or 18.14% compared to the previous crop year, down to only 9. .7 million bags in the current crop year.
FAS also adjusted Vietnam’s output in the current crop year 2023/2024 to reach 27.50 million bags, an increase of 1.10%, compared to the previous crop year, including 26.62 million bags of Robusta coffee, an increase of 1. .22% and 880,000 bags of Arabica coffee, down 11.11% compared to the previous coffee crop, but down 3.8 million bags compared to the previous estimate. In addition, FAS also predicts that coffee inventory carried over from the 2022/2023 crop year will only be about 339,000 bags of coffee, due to the limited supply of the crop year.
English (giacaphe.com)
