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The coffee market remains firmly entrenched within the recent trading range as prices have found little benefit this morning from a weaker Dollar and early strength in global equities. Improving macro-economic sentiment due to positive developments in the Euro zone has provided limited support for the coffee market but has not been enough for prices to shed their recent negative tone. Many European trade houses are projecting the upcoming Brazilian coffee crop at 55 to 58 million bags, which if accurate could potentially offset supply shortfalls from several major producers this season. With the Lunar New Year holidays concluding, coffee supplies from Vietnam may increase during the next few weeks. There are reports of an outbreak of the “roya” fungus in the Antigua coffee production region of Guatemala. ICE exchange coffee stocks were up 5,802 bags at 1.529 million as of January 26th, with 45,239 pending review.
TODAY’S GUIDANCE: The Dollar and global equity market may not be making strong enough moves for the coffee market to receive significant support this morning. With the shadow of Brazil’s potential “bin-buster” crop hanging over the market this far ahead of harvest, March coffee may need to receive fresh news of supply problems in order to break out above this week’s trading range.
TODAY’S MARKET IDEAS: March coffee resistance will be at 221.90 this morning, with 216.80 as the next support level. A slide below this week’s lows could lead to a retest of the mid-December lows.
Energy: Early Morning Bias Favors the Bear Camp, but Losses Appear Limited
Metals: Gold Might be Facing Adverse Currency Action Choppy Global Equities
Currencies: Heading Into the Weekend On a Positive Will Help Canadian
Interest Rates: Markets watching Philly Fed Speech & EU News
Coffee: Needs Support from Outside Markets
by Terry Roggensack on January 27, 2012
Below is a sample of The Hightower Report’s Daily Commentary. To get this comment, and our daily coverage of 15 additional markets and trade ideas, visit futures-research.com for your free 2 week trial!
The coffee market remains firmly entrenched within the recent trading range as prices have found little benefit this morning from a weaker Dollar and early strength in global equities. Improving macro-economic sentiment due to positive developments in the Euro zone has provided limited support for the coffee market but has not been enough for prices to shed their recent negative tone. Many European trade houses are projecting the upcoming Brazilian coffee crop at 55 to 58 million bags, which if accurate could potentially offset supply shortfalls from several major producers this season. With the Lunar New Year holidays concluding, coffee supplies from Vietnam may increase during the next few weeks. There are reports of an outbreak of the “roya” fungus in the Antigua coffee production region of Guatemala. ICE exchange coffee stocks were up 5,802 bags at 1.529 million as of January 26th, with 45,239 pending review.
TODAY’S GUIDANCE: The Dollar and global equity market may not be making strong enough moves for the coffee market to receive significant support this morning. With the shadow of Brazil’s potential “bin-buster” crop hanging over the market this far ahead of harvest, March coffee may need to receive fresh news of supply problems in order to break out above this week’s trading range.
TODAY’S MARKET IDEAS: March coffee resistance will be at 221.90 this morning, with 216.80 as the next support level. A slide below this week’s lows could lead to a retest of the mid-December lows.
Tags: Coffee, Softs
About Terry Roggensack