Robusta coffee term 01/2023 (LRCF23) had a slight upward correction, but it was also a good sign, increasing by 4 USD (+0.22%), closing price at 1,853 USD/ton.
As usual, the closer it is to the time of announcing the new Fed interest rate, the more money flows into the US dollar. Investors now think that the Fed will keep the rate of interest rate hike at 0.75% at tomorrow’s meeting and may reduce it to 0.5% at the December meeting. The dollar continues to increase by 0.81% to 111.64. There was a divergence in the commodity market as oil, gold, rubber, and copper fell, while wheat and coffee on both exchanges increased despite the appreciation of the dollar.
According to the General Statistics Office of Vietnam, coffee exports in October were estimated to decrease by 19.5% compared to the same period last year, reaching about 80,000 tons. Accumulation in the first 10 months of crop year 2022 reached about 1.4 million tons, up 10.6% over the same period last year. Abundant supply from Vietnam is the factor restraining the increase of Robusta prices.
According to technical analysis, the trickle increase in the last session cannot be considered as a correction when the price of Robusta has fallen deeply for many consecutive sessions. The RSI is still deeply in the oversold zone at 19.93% while the MACD shows a strong bearish signal. However, if the upward correction continues to hold, the price may find the resistance area near 1880-1900. On the contrary, the near support zone of the price is 1820-1830 and further is 1800. If opening a new buy position, the Client should consider taking profits in the session following the short wave of recovery and have a reasonable stop loss strategy. if the price returns to its downtrend.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 1840-1845 USD,
- Support zone 2: 1825-1830 USD,
- Proportional buy, stop loss $1805.
CL SELL DOWN:
- Resistance level 1: 1875-1880 USD,
- Resistance level 2: 1895-1900 USD,
- Sell proportionally, stop loss 1920 USD.
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.
