Arabica coffee term 03/2023 (KCEH23) ended the session slightly lower after the Martin Luther King Jr holiday, down 0.60 cents (-0.40%), closing price at 151.10 cents/lbs.
The dollar fell against most major currencies as pressured by the possibility that the Bank of Japan could change policy and end the yield curve.
US inflation is gradually slowing after the US consumer price index (CPI) data was released last week and yesterday’s information showed the “Empire State” index in New York on current business conditions. current price dropped sharply to -32.9 this month, from -11.2 in December, adding further support to that statement. The Brazilian Real is recorded at 1 USD = 5,1007 BRL.
ICE New York’s qualified inventories hit a 6-month high at 850,724 bags and 139,161 bags left pending sorting, as of January 13.
In addition, according to a report from Somar Meteorologia, the Minas Gerais region received 351% more rainfall than the multi-year average at 249.9mm last week, and Minas Gerais accounts for about 30% of coffee production, according to a report from Somar Meteorologia. Brazilian Arabica. The above information has put pressure on the recovery momentum of Arabica coffee prices.
Technical Trends
According to technical analysis, the technical indicators are showing neutral signals that the price trend is not yet clear. It is expected that in the short term, Arabica price may struggle to accumulate within a range of 145 – 160. Only when the rising price breaks out of the MA50 at the 165-166 price range will the uptrend be established clearly. Any recovery span is also an opportunity for customers to get rid of their buying position at an unfavorable low price area.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 149 – 149.5 cents
- Support zone 2: 146.5 – 147 cents
- Stop Loss: 145.5 cents
CL SELL DOWN:
- Resistance zone 1: 152.5 – 153 cents
- Resistance zone 2: 154 – 154.5 cents
- Stop Loss: 156 cents
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