With bullish developments from the supply and demand side of the market, coffee should be able to maintain upside momentum. A more than 1.5% rally in the Brazilian Real provided coffee with carryover support as that will ease pressure on Brazil’s farmers to market their remaining near-term supply. In addition, analysts at the University of Sao Paolo indicate those farmers are holding onto their coffee in anticipation of tight supply next season. Guatemala’s October coffee exports were over 67% higher than last years total, which shows that the flow of the Central American coffee supply continues to recover from last years sever storm damage. The daily technical indicators have crossed over up which is a bullish indication. Positive momentum studies in the neutral zone will tend to reinforce higher price action. Resistance comes in at 21680 and 21940 with support coming in at 20975 and 20535.

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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