Arabica coffee term 12/2022 (KCEZ22) was mixed with coffee on London floor, reversed to increase, increased by 3.35 cents (+1.52%), the price closed the old session at 223.80 cents/lbs.
US stocks slid, US CP bond yields continued to increase, and the dollar also set a new record, increasing 0.24% at 113.41. Other G7 currencies against USD also continuously set new lows. The Real continued to decrease by 2.32% against the USD, 1 USD = 5,3760 BRL. This exchange rate will theoretically trigger a strong selling force, putting downward pressure on Arabica coffee prices. However, yesterday’s coffee price on the New York floor was supported by basic information on inventories and some commodity funds boosted purchases after Arabica dropped for many previous sessions.
Inventories of coffee meeting New York floor standards as of September 26 continued to be recorded at 460,387 bags, the lowest level in 23 years. Both producers and investors are continuing to monitor the rainfall in Brazil’s coffee growing regions this week with good and favorable rainfall forecasts.
According to technical analysis, yesterday session, there was a time when Arabica surged above 232 level but could not maintain this price until the end of the session, but weakened and closed at 223.80 due to strong selling and profit taking from those holding a lot of money. real goods in hand. The technical indicators are showing neutral signal, it is expected that the price will still struggle in the 215-235 range in the short term.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 217 – 217.5 cents
- Support zone 2: 211.5-212 cents
- Stop Loss: 208 cents
CL SELL DOWN:
- Resistance zone 1: 230.5 – 231 cents
- Resistance zone 2: 238-238.5 cents
- Stop Loss: 242 cents
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