Arabica coffee term 12/2022 (KCEZ22) had a labor holiday session, the price closed the old session at 228.80 cents/lbs.
The European energy crisis and China’s Covid-19 blockade are increasingly stressful, causing the market to worry about the health of the global economy. Therefore, the USD continues to be a haven for cash flow and appreciates against a basket of currencies and commodities. The real, up 0.65%, is currently trading around 1 USD = 5.1530 BRL.
Inventories of coffee meeting New York floor standards as of September 5 reached 670,681 bags, slightly down from 672,585 recorded the previous day. In Colombia, the world’s second largest Arabica producer, reports recorded in August, coffee production reached 949,000 bags, up 4% from the previous month, accumulated in the first 8 months of the year reached 7.3 million bags, 7% lower than the same period. Thus, in general, Arabica production in South America is being recorded and forecasted lower than the previous period. This is a factor that supports the price of Arabica coffee in the period when monetary factors are dominating commodity prices.
According to technical analysis, the technical indicators are showing neutral signals, so it is expected that the price will continue to struggle and accumulate in the range of 220-240. In the context of the USD continuously increasing in price compared to the basket of goods, the downward pressure of Arabica coffee in particular remains despite the output information that is temporarily supporting the price. Today, Arabica floor reopens, is expected to be active and have a downward adjustment to keep up with London floor coffee.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 226 – 226.5 cents
- Support zone 2: 224-224.5 cents
- Stop Loss: 221 cents
CL SELL DOWN:
- Resistance zone 1: 232.5 – 233 cents
- Resistance zone 2: 236-236.5 cents
- Stop Loss: 239 cents
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