Robusta coffee term T11/2022 (LRCX22) returned to the downtrend channel, down 26 USD (-1.18%), closing price at 2,182 USD/ton.
Inflation in Germany – the economic locomotive of the EU region hit 10.9%, 10% higher than expected, leading to worries about the EU’s general inflation situation. The President of the EU Central Bank also said that there will be many more rate hikes to come. The gloomy economic situation in the EU has significantly affected the speculative cash flow and the demand for coffee on the London floor.
According to the General Department of Vietnam Customs, it is estimated that coffee exports in September reached 100,000 tons, down 3% over the same period but accumulated in the first 9 months of the year, increased by 6.14% over the same period last year. Inventories of Robusta meeting London floor standards as of September 26 increased 2.4% to 94,350 tons.
According to technical analysis, without the support of fundamental information, the rebound of the budding Robusta coffee price has faded, the price has returned to the support area of 2180 and the downward momentum is still there. 2140 – 2150 is the next support zone for Robusta. It is expected that in the short term, the price of Robusta coffee will still struggle to accumulate and decrease to find support in the frame 2140 – 2230.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2160-2165 USD,
- Support zone 2: 2145-2150 USD,
- Proportional buy, stop loss $2125.
CL SELL DOWN:
- Resistance level 1: 2205-2210 USD,
- Resistance 2: 2225-2230 USD,
- Proportional sell, stop loss $2250.
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