Arabica coffee term 12/2022 (KCEZ22) has not shown signs of improvement, continued to decrease slightly by 0.45 cents (-0.23%), the price closed the old session at 195.15 cents/lbs.
The negative trend of coffee prices on both bourses continued in the context of the unstable world economic situation due to inflation, interest rates of G7 currencies continuously increasing, causing borrowing costs to expand production and business. Increased sales in the demand for goods and coffee in particular were affected by inflation. In addition, the major coffee growing countries in the world all promise to have an abundant supply in the new crop year, making coffee prices more difficult.
Inventories of coffee meeting New York floor standards as of October 17 reached 397,999 bags. According to the Green Coffee Association GCA, the inventory volume of 60 kg bags decreased to 6.37 million bags. This is the first drop since March for both coffee in ICE warehouses and holdings at US ports.
According to technical analysis, RSI is approaching the oversold zone of 29.10%. All technical indicators are showing signs of bearish momentum. It is expected that in the short-term, the price may continue to drop to the support zone of 194-195 or a more negative scenario to the hard support zone of 190-191. It is possible to open a new open buy position with a low proportion at that price area to follow the technical bullish retracement wave and take profits during the session.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 192.5 – 193 cents
- Support zone 2: 190.5 – 191 cents
- Stop Loss: 188 cents
CL SELL DOWN:
- Resistance zone 1: 199.5 – 200 cents
- Resistance zone 2: 202.5-203 cents
- Stop Loss: 207 cents
Banks accompanying coffee businesses:
Sacombank is a bank that provides commodity price derivatives with the permission of the State Bank of Vietnam, and is a long-time reputable 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.
