While the market continues to have trouble keeping upside momentum, it has found support well above its October lows and continues to be strengthened by bullish supply developments, along with improving global demand. The Brazilian currency sold off over 1%, which weighed on the coffee market as this extended period of currency weakness could make famers in Brazil more aggressive with marketing their remaining 21/22 coffee supplies. Good rains over Brazilian growing areas was another source of pressure on the market, as that may improve outlooks on their upcoming production. Technical indicators trending lower at midrange will tend to reinforce a move lower, especially if support levels are broken. A close below the 9-day moving average confirms the short-term trend is negative. Support comes in today at 19760 and 19580 while resistance is at 20220 and 20500.

Coffee Dec ’21 Daily Chart
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Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
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