For the second time in a month, coffee prices have broken out of tight consolidations level with a sharp upside move. Coffee is at multi-year highs, coffee should be able to maintain upside momentum over the rest of this week. Diminishing views for brazils 21/22 off year Arabica crop, have been underscored by the latest forecast from Brazilian government agency which projects 31% decline from last seasons output. A little more rain has been added to Brazil weather forecast this week, but then switching back to mainly dry by next week.
Daily technical indicators have crossed over up, which is a bullish indication. The near term upside objective is at 16120. The next area of resistance is around 15900 and 16120. Support comes in at 15245 and below that at 14800.