The price of Arabica coffee for the term of March 2023 (KCEH23) was unchanged because yesterday the market was on Christmas holiday, the price closed the old session at 172.00 cents/lbs.
Market overview
Ending the session yesterday, the dollar fell slightly amid the Christmas holiday market and the market also expected that the Fed would raise interest rates less after the data on core personal consumption expenditures (PCE) published last week showed that the US economy is gradually cooling down. The DXY index ended the session down 0.09% at 104.19. The Brazilian Real is trading around 1 USD = 5.2189 BRL. This exchange rate restrained the selling momentum of producers, helping to support the recovery pace of Arabica coffee.
According to a report by the US Department of Agriculture (USDA), global coffee production is estimated to increase by 6.6 million bags to 172.8 million bags in the 2022/2023 crop year. Additionally, the USDA forecasts that the Brazilian arabica crop is forecast to increase by 3.4 million bags to 39.8 million bags, although much lower than recent crops in the country’s biennial cycle. this year, peaking at nearly 50 million bags.
Technical Trends
According to technical analysis, RSI is at the average level, MACD shows bullish momentum signal.
It is expected that in the short term, Arabica price may increase to detect resistance with the near-term target at MA50 174 – 175, on the contrary, 160-162 is the near support area of the price.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 169.5 – 170 cents
- Support zone 2: 167 – 167.5 cents
- Stop Loss: 166 cents
CL SELL DOWN:
- Resistance zone 1: 174.5 – 175 cents
- Resistance zone 2: 177 – 177.5 cents
- Stop Loss: 180 cents
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