Coffee futures prices continued the negative trend due to heightened risk aversion to the possibility that most major central banks will continue to tighten monetary policy due to excessive inflation…
Robusta London chart November 2022, week 37 (from September 12, 2022 to September 17, 2022)
For the whole week of 37, the London market had 5 consecutive decreasing sessions. The price of Robusta coffee for November delivery fell by all 62 USD, or 2.74%, to 2,202 USD/ton and for January 2023 delivery fell all 64 USD, or 2.84%. 2,189 USD/ton, the reductions are quite strong. Trading volume below average.
Similarly, the New York market had 1 up and 4 down sessions. The price of Arabica coffee for December delivery fell all of 13.40 cents, or 5.86%, to 215.10 cents/lb, and the March delivery date for March 2023 fell all of 12.90 cents, ie down. 5.79%, to 209.75 cents/lb, sharp declines. Trading volume on average.
The price of green coffee beans in the Central Highlands market decreased from 1,000 to 1,100 dong, to range from 47,200 to 47,700 dong/kg.
Highlights of the week were the US economic index reports that continued the negative trend, leading to heightened risk concerns when speculating that the US Federal Reserve (Fed) would tighten policy further. to stave off inflation and a global recession in general, drove USDX to a 20-year high that drove commodity speculators virtually out of the markets. Besides us, the strike news of hundreds of thousands of Federal Railroad workers this week has the potential to push up US inflation even higher.
The August inventory report of the North American Coffee Bean Association (GCA) increased by more than 5% year-on-year as Brazilians boosted sales of this year’s new crop due to the strong reais. The benefit also made coffee futures prices on both exchanges tend to remain negative for a long time.
The focus of the markets’ attention in the coming week is the periodic monetary policy meeting of the Fed – US and Copom – Brazil to consider the possibility of raising the basic interest rate further to prevent inflation from surpassing. level.
As of Thursday, September 15, the inventory of Robusta coffee certified and monitored by the London floor has increased by 1,250 tons, or 1.39% compared to the previous day, to record inventories at 91,070 tons (equivalent to 1,517,833 bags, 60 kg bags).
Notify: Monday, September 19, London market for the National Funeral Ceremony of the Queen of the United Kingdom, closed all day without trading. New York market opens late after 18:30.
English (giacaphe.com)
