The heightened risk aversion pushed coffee futures to set new highs on both exchanges…
Robusta chart London 11/2022 week 34 (from August 22, 2022 to August 27, 2022)
For the whole week 34, the London market had 3 increasing sessions and 2 decreasing sessions at the end of the week. The price of Robusta coffee for November delivery increased by all 53 USD, or 2.38%, to 2,279 USD / ton, and for delivery in January 2023, increased by all 54 USD, or 2.45%, to $2,260/ton, strong increases. Trading volume above average.
On the contrary, the New York market had 4 consecutive gaining sessions and 1 decreasing session at the end of the week. The price of Arabica coffee for December delivery increased by all 24.75 cents, or 11.60 percent, to 238.10 cents/lb, and for March delivery in March 2023, all of them increased by 22.55 cents, ie an increase. 10.78%, to 231.65 cents/lb, extremely strong gains. Trading volume very above average.
The price of green coffee beans in the Central Highlands market increased by 500-600 dong, ranging from 48,200 to 48,800 dong/kg.
The ICE inventory report continued to decline and the dry weather in the coffee growing regions of south-central Brazil continued to be used by speculation to push prices on both futures exchanges. Besides, the impact of USDX’s rebound in the basket of strong currencies helped support coffee prices to rise to new highs. The price of Arabica coffee in New York has just had a strong increase week, standing at a 6-month high and the price of Robusta coffee in London standing at a high of 7.5 months right after the September futures contract expiration date. .
The market continues to monitor the US economic index reports in the coming days, because the US Federal Reserve (Fed) will use that as the basis for operating monetary interest rates. Fed President speaking at the Jackson Hole Conference affirmed that he would not hesitate to raise interest rates sharply to show his determination to prevent inflation, even if it would make people and companies have to “pain”. US stocks tumbled after this statement, causing Wall Street to evaporate nearly 50 billion USD in just one session with concern that interest rates will be increased due to many comments that the US economy has not reached the peak of inflation.
As of Monday, August 22, the inventory of Robusta coffee certified and tracked by the London floor has decreased by 1,700 tons, or 1.73% compared to a week earlier, to record inventories at the level. 96,480 tons (equivalent to 1,608,000 bags, 60 kg bags).
Notify: Monday, August 29, London market is closed for Summer bank holiday, closed all day without trading. The New York market opens after 6:30 p.m.
English (giacaphe.com)
