Robusta coffee term T11/2022 (LRCX22) had a slight decrease at the beginning of the week while the New York Stock Exchange was on holiday, down 6 usd (-0.27%), closing price at 2217 USD/ton.
The European energy crisis is still deadlocked, the EUR price has fallen to the lowest level against the USD when touching 0.9890 EUR/USD at one point. Besides, the transfer of power of the British government also affected the GBP to depreciate and hit a 3-year low of 1.1444 GBP/USD. In general, the USD continued to increase against a basket of currencies and commodities. Coffee is temporarily not favored by speculative cash flows, so the immediate downward pressure on prices remains.
Inventories of coffee meeting London floor standards by the end of August 31 remained at 94,750 tons. According to the US Department of Agriculture (USDA), crop year 2022/23 Vietnam reached 30.9 million bags, down 2.2% compared to this crop year.
According to technical analysis, the indicators are showing that the bearish momentum is still there, so it is forecasted that in the short term, Robusta price will continue to correct down with the near support zone at 2200-2210 and beyond. 2155-2170. If the price breaks this support level, it can trigger a sharp decline in the price. On the other side, the price needs to retest the area of 2260-2280 to attract buyers to continue pushing the price up
HINTS BUY/SELL STRATEGY IN THE Session (refer).
NEW BUYING CL:
- Support zone 1: 2200-2205 USD
- Support zone 2: 2185-2190 USD
- Proportional buy, stop loss $2170
CL SELL DOWN:
- Resistance 1: 2235-2240 USD
- Resistance 2: 2250-2260 USD
- Proportional sell, stop loss 2280 USD
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