The market continues to worry that the Fed will raise the operating interest rate at the first meetings of 2023…
For the whole week 51, the London coffee market had 3 increasing sessions and 2 decreasing sessions. The price of Robusta coffee for spot delivery in March increased by all 9 USD, or 0.48%, to 1,975 USD/ton and for May delivery also increased by 9 USD, or 0.49%, to 1,845 USD/ton, slight increases. Trading volume is above average.
Similarly, the New York market had 3 increasing sessions and 2 decreasing sessions. The price of Arabica coffee for delivery in March increased by all 7.60 cents, or 4.62%, to 172.00 cents/lb, and for May delivery, it increased by 7.00 cents, or 4.00 cents. .25 %, to 171.60 cents/lb, fairly strong gains. Trading volume is average.
The price of green coffee beans in the Central Highlands market decreased from 0 to 100 dong, to range from 40,900 to 41,500 dong/kg.
The highlight of the week was the heightened risk aversion when the COVID-19 infection report increased again, making the world’s largest commodity market not as active as expected. USDX continues to be chosen as a safe haven for speculative capital flows after the US GDP in the third quarter was adjusted to 3.2% instead of only 2.6% as previously reported. This has made Wall Street investors worried that the Fed will sharply tighten monetary policy at its first meeting in 2023.
Although Conab – Brasil has not released the official survey number on the new coffee crop, but the market has speculated that it will be a positive number compared to what Conab had previously expected. Even though the adjusted figure for crop year 2022/2023 to 50.38 million bags, an increase of 5.6% compared to the previous crop year, shows that Conab is more or less cautious with the upcoming numbers to maintain credibility. of the world’s largest coffee producer and exporter.
As of Monday, December 19, the inventory of Robusta coffee certified and tracked by the London floor has decreased by 8,820 tons, or 11.84% down from a week earlier, to the registered level at 65,660 tons (equivalent to 1,094,333 bags, 60 kg bags). Recorded one-week drop in volume at record levels.
Market holiday schedule:
- Monday, December 26, Christmas holiday.
- Tuesday, December 27, New York Stock Exchange is open late.
- Wednesday, December 28, the two exchanges are open for normal trading.
English (giacaphe.com)
