Robusta coffee term T11/2022 (LRCX22) had a down session at the end of the week due to the strong appreciation of the USD, down by 6 USD (-0.27%), closing price at 2,232 USD/ton.
Both currency and commodity markets were tinged with red by the increase in the strength of the USD when the market was concerned that the strong and continuous interest rate hikes by major central banks in the world had been taking place. Global economic recession will not be far away. Coffee prices on both exchanges fell partly because speculative cash flows continued to flee to the US dollar, partly because of fears of an economic downturn, consumption demand will decrease as consumers will tighten spending. pepper.
According to Conab estimates, Brazil’s Robusta production in the 2022-2023 crop year will reach 18 million bags, an increase of 10.2% compared to the previous crop. In Vietnam, according to the General Department of Vietnam Customs, coffee exports in the first half of September reached 38,756 tons, accumulated in the first 8.5 months of 2022 reached 1,287 million tons, up 13.54% over the same period last year.
According to technical analysis, RSI is around 50% average but MACD shows bearish signal still. It is expected that in the short term, Robusta coffee prices will fluctuate in the range of 2150-2300. As long as the support area of 2180-2200 is still firm, the price of Robusta still has a bullish accumulation direction. If not, it is possible to correct further to the 2140-2150 zone. On the contrary, 2280-2300 is the resistance area of Robusta, if it can successfully test above the above price range, Robusta will have the motivation to find the old peak of 2350.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2210-2215 USD,
- Support zone 2: 2200-2205 USD,
- Proportional buy, stop loss $2180.
CL SELL DOWN:
- Resistance 1: 2245-2250 USD,
- Resistance 2: $2255-2260,
- Sell proportionally, stop loss $2280.
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