The coffee market has been trending lower since its recent high of 129.20 on October 19th, but looks to be searching for a low with sideways trading the past couple weeks. Coffee’s recent strength has come from increases in the Brazilian currency, despite a large increase in Brazilian exports for December, an increase of 59% from last year. India experienced a decrease due to heavy rains and flooding in key growing regions. Short covering today could cause us to see the second weekly close higher in a row. Overall the market is seeing support above its most recent lows even with supply in the short term being bearish. Support comes in at 100.75 and then down around 99.30. Resistance is at 103.95 and a close over 105.15 would reverse the trend back to the upside. In the short-term the market should continue to see pressure but hold support, with short covering causing a reversal of the trend back to the upside
Coffee Mar ’19 Daily Chart
