Uncertainty about the Fed cutting interest rates has caused commodity markets to reveal negative trends…
At the end of the trading session, Robusta coffee prices on ICE Europe – London floor adjusted after three consecutive sessions of increase. Futures for delivery in May decreased by 9 USD, to 3,180 USD/ton and futures for delivery in July decreased by 5 USD, to 3,100 USD/ton, slight decreases. Trading volume is above average.
Similarly, the price of Arabica coffee on the ICE US – New York floor has the same decreasing trend. Futures for May delivery decreased by 3.55 cents, to 183.35 cents/lb and futures for July delivery decreased by 3.10 cents, to 181.40 cents/lb, quite good decreases. Trading volume remains well above average.
Although Robusta coffee futures prices decreased slightly last session, due to shortages, domestic coffee prices continue to increase today.
Today’s green coffee price in the Central Highlands provinces increased by 500 – 700 VND, fluctuating between 86,800 – 87,700 VND/kg.
Concerns about a budget debt of up to 34 trillion USD and the world’s richest billionaire Elon Musk being usurped show that the US stock market is in turmoil, speculative capital flows are shifting to find safe havens. causing most commodity prices to decline. While the Chinese Government is determined to grow GDP at 5%/year by issuing ultra-long-term bonds worth 1 trillion yuan (about 139 billion USD) for large projects not included in the government’s budget. key industries. The US Presidential election race is also heating up day by day. The Fed’s policy meeting at the end of March is also attracting the attention of the global financial market. DXY rose slightly 0.16% as uncertainty about interest rate cuts and cautious anticipation of US labor market data to be released later in the week pushed overall commodity markets back negative trend.
Reported data shows that ICE inventories in both markets are being significantly replenished following the report that coffee exports in February from major producing countries increased sharply. Notably, Honduras, the largest producer of high-quality wet-processed Arabica coffee in Central America, occupies the top position in ICE – US, increasing by more than 26% over the same period. While the market speculated that Vietnamese farmers were hoarding goods, the General Statistics Office’s February export report put the figure at 200,000 tons, approximately the same period last year, implicitly denying all rumors because of that. This is quite a high number compared to monthly exports from the world’s leading Robusta producer.
English (giacaphe.com)
