The price of Robusta coffee for the term T03/2023 (LRCH23) dyed red on both coffee floors, down 12 USD (-0.63%), closing price at 1,895 USD/ton.
More and more economic data proves that US inflation has been and is starting to decelerate. Last week was the US consumer price index CPI, and yesterday the Empire State manufacturing index was released, showing that business activity fell in January to the lowest level since 2020 due to orders. Orders fell and job growth stalled.
The New York Fed’s “Emprite State” index of current business conditions has plummeted to -32.9 this month, from -11.2 in December. The news from this index has had a negative impact on copper prices. USD. Most of the G7 foreign currencies rose against the USD. As for the commodity market, there was an increase and decrease in price, while most commodities increased in price, but coffee on both floors was dyed red because of good rain forecast information supporting abundant supply. abundant.
According to a forecast from coffee importer Wolthers Douque, Brazil’s coffee crop 2022/2023 will increase 16% to 65 million bags over the same period last year due to improved weather conditions. This weakness has put pressure on Robusta coffee prices.
Technical Trends
According to technical analysis, the technical indicators show that the bullish momentum is still there, the MACD is converging upwards, the MA lines have also converged and the price is anchored above the crossover point. It is expected that in the short term, the price may continue to struggle to find the next resistance at the MA100, which is the 1930 level or beyond, the 1950 zone. Conversely, 1850 – 1860 is a hard support area for the price. Customers should not catch the top to open a new sell position when the uptrend is still strong.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1885-1890 USD,
- Support zone 2: 1870-1875 USD,
- Proportional buy, stop loss $1,858.
CL SELL DOWN:
- Resistance level 1: 1910-1915 USD,
- Resistance level 2: 1925-1930 USD,
- Sell proportionally, stop loss 1939 USD.
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