By IFCMarkets
Expected rise in global supply bearish for coffee price
The United States Department of Agriculture (USDA) Foreign Agricultural Service forecast global coffee production will exceed demand by 6.4 million bags in 2020/21, as estimated in its biannual World Markets and Trade report released recently. The USDA forecasts world coffee production for 2020/21 to be 9.1 million 60-kilogram bags higher than the previous year, at record 176.1 million. Speculators increased their net short position in ICE arabica futures by 6,326 contracts to 17,489 contracts in the week to June 9, according to Commerzbank. And analysts note that coffee demand could be negatively impacted by a second wave of coronavirus infections. An expected rise in global demand and drop in demand is bearish for coffee price.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Sell | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Sell | |
| Parabolic SAR | Sell |
Summary of technical analysis
| Order | Sell |
| Buy stop | Below 94.21 |
| Stop loss | Above 100.76 |
Market Analysis provided by IFCMarkets
