Overview of the Arabica coffee market (October 25, 2022)

Rate this post

Arabica coffee term 12/2022 (KCEZ22) continued to decline, but the rate of decline weakened, down 0.50 cents (-0.26%), the price closed the old session at 190.40 cents/lbs.

The world political scene has many new changes when the UK has its first black Prime Minister who is a former finance minister. The BOJ also intervened to save the JPY’s continuously falling price. In the US, the market awaits the announcement of business results of BigTech on Thursday with the anticipation of positive data, which will partly affect the FED to slow down the upcoming rate hike. The USD had a bullish session thanks to the strong recovery of US stocks. The Brazilian Real plummeted 2.97%, 1 USD = 5.3010 BRL. This exchange rate strongly activates producer sales. Brazil is estimated to have sold about 60 percent of its freshly harvested crop, up from 52 percent last year.

Inventories of coffee meeting New York floor standards as of October 21 decreased, reaching 23,435 tons. Information predicting an upcoming bountiful crop of Brazil is still smoldering, restraining the recovery of Arabica coffee prices. Of course, it is not excluded that this is just an excuse of speculators to force prices down.

According to technical analysis, the RSI is deeply in the oversold area of ​​26.48% and the MACD shows bearish momentum. It is expected that in the short term, the price may continue to drop to the support zone of 185-187. However, it is not possible to rule out the possibility that a technical recovery will soon occur because the price has entered the oversold area quite deeply. Customers need to keep a safe proportion of cash and when there is an upward correction, it is an opportunity to reduce the unfavorable LONG position.

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

NEW BUYING CL:

  • Support zone 1: 187.5 – 188 cents
  • Support zone 2: 185.5 – 186 cents
  • Stop Loss: 182 cents

CL SELL DOWN:

  • Resistance zone 1: 194.5 – 195 cents
  • Resistance zone 2: 196.5-197 cents
  • Stop Loss: 201 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.

Leave a Reply

Your email address will not be published.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