Robusta coffee term T11/2022 (LRCX22) reversed to decrease before the appreciation of the USD, down 24 USD (-1.11%), closing price at 2,142 USD/ton.
September US Producer Price Index (PPI) data was released, up 0.4% from August and double the forecast of 0.2%. The market is still waiting for important news today. US CPI in September. Therefore, the USD continues to gain momentum against a basket of foreign currencies and commodities. Cash flow fled from risky assets, namely agricultural products, in which coffee on both exchanges did not escape the sell-off situation.
According to the Brazilian coffee exporters association (Cecafe), Brazil’s September coffee exports reached 3.07 million bags, up 7.10% over the same period last year, of which Arabica increased by 18% and Robusta decreased by 62.2%. compared to the same period last year. This explains why the price drop of Arabica was stronger than that of Robusta in the last session.
According to technical analysis, yesterday’s drop was still within the cumulative range of Robusta prices. The support zone at MA200 2100-2105 is a lifeline for the price, breaking this zone is a very bad scenario for Robusta coffee. Today, the market received news of US CPI, so the price is expected to fluctuate unpredictably in a wide range. Customers consider increasing the proportion of cash and can reduce their position if there is a favorable adjustment for their position.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2125-2130 USD,
- Support zone 2: 2110-2115 USD,
- Proportional buy, stop loss $2095.
CL SELL DOWN:
- Resistance level 1: 2165-2170 USD,
- Resistance 2: 2185-2190 USD,
- Sell proportionally, stop loss $2210.
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