Coffee Finishes Strong After Week’s Dismal StartPosted 11/02/2018 9:10AM CT |
The December coffee market continues its turnaround from the recent down-trend’s low of 11.35 on Wednesday. Short covering has accelerated the turn around with the possibility of next year’s production being lowered, also supporting a continuation of the move higher. Support has come from increases in producing country’s currencies which helps producers who sell their crop internationally. Brazil, one of the world’s top producing countries, still has a record high crop from the current production year and their exports for October were up from the previous month and compared to last year. Although Brazil and Vietnam have had great years production wise, outlook for next year looks lower as demand looks to continue improving. The coffee market has the backing to continue this rally to test resistance and continue on to new, recent highs with momentum studies rising to mid-level. Resistance comes in at 121.45 and then at the most recent high of 125.50. A close over first resistance at 121.45 will continue the markets turnaround while a close under 116.75 would reverse the trend back to the downside.
Coffee Dec ’18 Daily Chart