Speculation that the Fed will maintain high interest rates for a long time at the executive meeting in the middle of next week has caused funds and speculators to aggressively liquidate their net positions on both coffee futures exchanges…
For the whole week 43, the London market had 1 increasing session and 4 consecutive decreasing sessions. The price of Robusta coffee for January delivery decreased by a total of 96 USD, or 3.97%, to 2,383 USD/ton, and for March delivery, it decreased by a total of 67 USD, or by 2.77%, to 2,355 USD/ton. tons, the reduction levels are quite good. Trading volume is quite above average.
Meanwhile, the New York market had 2 extended increasing sessions at the beginning of the week and 3 consecutive decreasing sessions afterward. The price of Arabica coffee for December delivery decreased by a total of 4.30 cents, or 2.60%, to 160.95 cents/lb and for March 2024 delivery, it decreased by 3.90 cents, or 2.37 cents. %, to 160.50 cents/lb, very significant reductions. Trading volume is quite above average.
The price of green coffee beans in the Central Highlands market decreased by 500 – 600 VND, down to fluctuating in the range of 58,700 – 59,400 VND/kg.
Highlights of the week were market speculation about the possibility that the Fed would maintain high interest rates for a long time and concerns that the conflict in the Middle East could spread, funds and speculation rushed to liquidate their net positions due to ” overbought” for the previous two consecutive weeks, causing speculative capital to flow strongly into short-term haven assets, helping gold prices soar and coffee futures prices reverse and decline again.
Coffee prices weakened due to the weather in southern Brazil with good rains supporting new cotton crops and the prospect of weak demand from the conflict in the Middle East causing investors to temporarily withdraw capital from the two futures exchanges. .
Robusta coffee inventory issued by the London Exchange Certified and Monitored, as of Friday, October 27, increased by 3,820 tons, an increase of 10.65% compared to a week earlier, to register at 38,680 tons ( about 661,333 bags, 60 kg bags), mainly coffee originating from Brazil.
Notification: Markets switch to winter trading hours, 1 hour later than before.
-From Monday, October 30, the two exchanges will have a transitional trading week according to specific times: London 16:00′ – 0:30′; New York 4:15 p.m. – 0:30 p.m.
-From Monday, November 6 onwards, New York will close at 1:30 a.m.
English (giacaphe.com)
