COFFEE Analysis: Will La Nina heat reverse coffee price downtrend?

September 30, 2020

By IFCMarkets.com

Will La Nina heat reverse coffee price downtrend?

No rain is forecast for Brazil’s coffee growing areas for the next 10 days with temperatures expected to hit record highs, according to Somar Meteorologia. This week temperatures may reach 35 degrees Celsius. Even those crops that benefited from rain in the past week have only had 30 millimeters (1.2 inch) this month, just 40% of what was expected. Adverse heat is bearish for 2021 coffee crop. However, arabica futures are down more than 15% this year due to record shipments of Brazil’s exports after cooler and wetter conditions favored coffee growth last year. While dry weather is an upside risk for coffee price, technical setup is bearish.

Indicator VALUE Signal
RSI Neutral
MACD Sell
Donchian Channel Sell
MA(200) Sell
Fractals Sell

 

Summary of technical analysis

Order Sell
Buy stop Below 108.94
Stop loss Above 124.31

Market Analysis provided by IFCMarkets.com

InvestMacro

Share
Published by
InvestMacro

Recent Posts

Prediction markets are opening many new opportunities for unregulated insider trading and unethical bets – in the name of making a game out of politics

By Matt Motta, Boston University and Robert Ralston, University of Birmingham  Arrests for betting on…

12 hours ago

Soaring US beef prices likely to rise further thanks to trade tensions and disease outbreaks

By Andrew Muhammad, University of Tennessee and Charles Martinez It’s summer grilling season, but for…

14 hours ago

WTI oil prices have collapsed below 80 dollars per barrel

By JustMarkets On Tuesday, the US stock market showed mixed dynamics caused by large‑scale profit‑taking…

14 hours ago

Gold Surges 2% Since Week Opening Amid Geopolitical Shifts and Fed Expectations

By RoboForex Analytical Department On Wednesday, spot gold (XAUUSD) hovered near 4,342 USD per troy…

14 hours ago

Your Bourse and FXPRIMUS Bring 24/7 Synthetic Indices to the Global Broker Market

Your Bourse and FXPRIMUS today announced a strategic partnership to bring Synthetic Indices, algorithmically generated…

2 days ago

Institutional investors continue to reduce their presence in metals

By JustMarkets  The US stock indices closed with a sharp surge amid the official signing…

2 days ago

This website uses cookies.