Hello and welcome to the weekly market news covering Monday 14 February – Friday 20 February 2022 for coffee futures.

Summary

  • Markets trade sideways as rate increase fears stalk investor sentiment
  • Continuing supply side constraints keep prices buoyant as commodities maintain firmer positions

Arabica Futures Chart (NY)

Arabica futures opened the week up at 250.55 c/lb before falling sharply on the day’s trading to gather some ground by mid-week to reach 252.10 c/lb. The market then encountered a degree of selling pressure towards the end of the week and dropped down to close at 244.30 c/lb. Incoming information on the Brazil 22/23 and subsequent crops, as well as ongoing logistical difficulties, suggest that 250 c/Ib will be a common figure for at least the next few months.

Robusta Futures Chart (Lon)

 

Robusta opened the week down, falling to 2243 $/MT quickly, but from there saw increased buying impetus, pushing it to 2282 $/MT on Wednesday’s trading. Similar to Arabica, the London Robusta market encountered selling pressure towards the end of the week to close at 2255 $/MT.

Analysis

The commodity markets effectively traded sideways this week as investors awaited the release of the minutes from the US Federal Reserve’s most recent policy meeting, which may well reveal plans to raise interest rates. The Coffee, Corn, Soybean, Gold, Silver, Palladium, and Platinum markets were firmer at the conclusion of the week, while the Wheat and Sugar markets were relatively unchanged, and the Cocoa market was softer. The week ended with the US Dollar trading a touch higher at 1.358 Sterling, 1.136 for the Euro, and 5.137 for the Brazilian Real due to the Dollar Index being buoyed by increasing value of the 10-year Treasury Note.

You can read more about this week’s fundamentals moving the market in our weekly Coffee Origin Weekly Digest here.

Published February 21, 2022
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