Arabica coffee term 12/2022 (KCEZ22) had a losing session at the end of the week and mixed with the red color with world goods, down 3.10 cents (-1.39%), the old session closed at 220.45 cents/lbs.
The USD index continues to set a record in the past 22 years, gaining 1% on Friday, at 112.38. Foreign currencies EUR, GBP have set lows in the past 22 and 37 years. At this stage, the USD is really the only and safest choice of money flow. The Real fell 2.64% against the USD, 1 USD = 5.2480 BRL. This exchange rate stimulates the selling momentum of producers because the harvest in Brazil is almost over and the availability of real goods is abundant while the storage is limited.
Inventories of coffee meeting New York floor standards continued to be recorded at 485,408 bags, the lowest level in the past 23 years. According to Conab Agricultural Product Supply and Forecast Company – Brazil, Brazil’s Arabica coffee output in the 2022-2023 crop year is forecast to reach 32.41 million bags, up 3.1% compared to the previous crop.
According to technical analysis, the price is accumulating sideways in the 215-235 range, the MA lines tend to converge and intersect. It is expected that in the short term, the price will still be under downward pressure to detect support with the near support zone at 210-212, the worse scenario is to test next to the 203-205 zone.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 217 – 217.5 cents
- Support zone 2: 214-214.5 cents
- Stop Loss: 210 cents
CL SELL DOWN:
- Resistance zone 1: 225 – 225.5 cents
- Resistance zone 2: 229-229.5 cents
- Stop Loss: 233 cents
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