Robusta coffee term T11/2022 (LRCX22) had a decrease in the last session of the week despite the slight weakening of the USD, down 12 USD (-0.53%), closing price at 2264 USD/ton.
In the Fed’s monetary policy meeting next week, the possibility that the Fed will raise interest rates by 0.75% is almost certain, so the current market starts to reflect the price on the rate increase in the November meeting with interest rates. increase is 0.5%. The USD therefore reversed and weakened against a basket of currencies and commodities. The market is still waiting for the US CPI information to be announced tomorrow evening on September 13, so it is likely that by the time the news comes out, the USD will still continue its downward correction after many consecutive gaining sessions.
Inventories of coffee meeting London floor standards continuously recorded a decrease. According to the General Department of Vietnam Customs, Vietnam’s coffee exports in August decreased by 1.2%. However, cumulative exports in the first 8 months of the year increased by 15.31%. This information has restrained the price of Robusta coffee while Arabica coffee and many other commodities have increased in price.
According to technical analysis, all technical indicators are showing neutral signals, so Robusta price is still temporarily in the range of 2200-2360.
It is expected that in the short term, the price will still fluctuate in the upper range, but breaking the support zone at 2180-2200 can trigger a strong drop to the 2140-2150 zone.
On the contrary, if the price increases and sustains above 2300-2320, it will attract buyers to buy more with the next expected resistance at 2350-2360.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2240-2245 USD,
- Support zone 2: 2220-2225 USD,
- Proportional buy, stop loss $2,190.
CL SELL DOWN:
- Resistance level 1: 2290-2295 USD,
- Resistance level 2: $2310-2315,
- Proportional sell, stop loss $2340.
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.
