Overview of Arabica coffee market (August 5, 2022)

Rate this post

Arabica coffee term September 2022 (KCEU22) continued its uptrend, up 4.65 cents (+2.17%), closing price at 219.30 cents/lbs.

Arabica coffee price had a strong recovery session thanks to the support from both monetary factors and macro information. The dollar cooled down slightly while the market was waiting for more US jobs information to be announced this Friday. The Real rose slightly against the USD and is trading around 1 USD = 5.22 BRL. This exchange rate restrained the selling momentum of producers, supporting the price increase.

Inventories of ICE-qualified coffee continued to decrease, reaching 695,135 thousand bags. In Columbia, the world’s second largest Arabica coffee producer, the La Nina weather phenomenon caused excessive rainfall, and coffee production was recorded continuously. In July, Colombia’s coffee production fell 22% year-on-year.

According to technical analysis, technical signals show that bullish momentum is still present. It is expected that in the short term, the price will struggle within the range of 210-230 and the price of Arabica needs to break through the range of 220-230 to attract the buying power to find a new resistance area. The intraday fluctuation range of Arabica is quite wide recently and increases and decreases unpredictably. Customers should consider small volume with increasing proportion at reasonable resistance/support levels, avoiding chasing buying/selling. by price.

HINTS BUY/SELL STRATEGY IN THE Session (refer).

NEW BUYING CL:

  • Support zone 1: 215 – 215.5 cents
  • Support zone 2: 211-211.5 cents
  • Stop Loss: 208 cents

CL SELL DOWN:

  • Resistance zone 1: 224.5 – 225 cents
  • Resistance zone 2: 227.5-228 cents
  • Stop Loss: 232 cents

Banks accompanying coffee businesses:

Sacombank is a bank that can supply commodity price derivatives with the permission of the State Bank of Vietnam, and is a reputable long-term partner of major commodity exchanges in the world such as CBOT, CME, NYMEX, LME … aims to help customers limit risks on market prices, increase business profits, protect capital…

Interested please contact: 028 6288 4100 / [email protected] or click here for more details.

Leave a Reply

Your email address will not be published. Required fields are marked *