Robusta coffee term T11/2022 (LRCX22) yesterday session London floor coffee holiday, price unchanged, closed at $2,202/ton.
Most investors are standing outside the market to observe and wait for official information on the Fed’s USD interest rate hike this week. As usual, at this stage, the USD continues to prove to be a safe haven for cash flow, so commodity prices are under downward pressure, coffee on both exchanges is no exception.
According to the inventory report of the North American Coffee Association, inventories in August increased by more than 5% compared to the same period last year. In addition, Brazil’s Robusta production also reached a historic high after many years of expanding new planting areas. This information made the decline of Robusta stronger than Arabica.
According to technical analysis, the MACD shows a bearish signal that the bearish momentum is still there with the psychological support at 2200 tested, the deepest drop to 2171 during the session and a gradual recovery at the end of the session to 2202. Expected price zone 2170 -2180 is likely to be tested again, if the price closes below this zone, it will trigger a strong drop to the 2140-2150 zone. On the contrary, the price needs to rise again and maintain above the 2260-2280 zone to break the short-term downtrend of Robusta coffee.
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2175-2180 USD,
- Support zone 2: 2145-2150 USD,
- Proportional buy, stop loss $2125.
CL SELL DOWN:
- Resistance level 1: 2230-2235 USD,
- Resistance level 2: $2250-2255 USD,
- Proportional sell, stop loss $2,285.
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