Arabica coffee term September 2022 (KCEU22) continued its upward momentum, increasing 3.15 cents (+1.50%), closing price at 213.20 cents/lbs.
Arabica coffee prices have a good recovery thanks to both monetary factors and supply and demand factors. The attraction of the USD temporarily weakened when the US stock market recovered due to stable business reports of many businesses. The Real continued to increase against the USD, 1 USD = 5.35 BRL supporting the upward momentum of Arabica prices.
Inventories of ICE-standard coffee continued to hit a 23-year low at 703.3 thousand bags. The dry, rainless weather in Brazil’s main coffee-growing region, Minas Gerais, has investors concerned about the drought that could affect coffee production in Brazil, which is in the midst of its own harvest.
According to technical analysis, the price of Arabica coffee is still fluctuating and accumulating within the range, the direction of the price is still unclear. In the context of the market waiting for information about the Fed’s interest rate hike, Arabica prices are still fluctuating in the range of 205-225. The near resistance zone of the price is 203-205 and beyond, if you lose 200 again, you can find the old bottom 193-194. On the contrary, the price must test and sustain above 220-223 to be enough. attraction activates strong buying force.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 207 – 207.5 cents
- Support zone 2: 204-204.5 cents
- Stop loss: 200 cents
CL SELL DOWN:
- Resistance zone 1: 218 – 218.5 cents
- Resistance zone 2: 221-221.5 cents
- Stop Loss: 225 cents
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