Arabica coffee futures recovered ground Thursday, after an early selling failed to attract large participation, prompting short covering. The most active contract for September delivery settled 150 points higher at 160.80 a pound. Constructive macro and fundamental factors continued to support the prices. Dry weather has affected the Brazil’s 2021 /2022 Arabica crop, and recently has raised concerns over the right development of the 2022 / 2023. Despite that the average of precipitations is very low for June, so far total accumulations are almost nil for the main producing areas. Latin American currencies reversed early gains ending lower. Participants will focus on reports of Brazil and the surge of the demand after the summer. Technically, the trend remains bullish. A large triangle formation on the September chart suggests a continuation pattern. Support and resistance are at 156 and 169 respectively. The RSI oscillator with neutral values (50.3%) , while the SSK is close to give a buy signal. A quiet day in the Robusta market today with a narrow range of 23 USD/ton, a close price of 1611 (+3) basis Sep21 and mostly unchanged spreads. Just like in the previous day, the market found support in the 1597- 1600 region indicating that the price decline seen earlier this week may have been just a correction and that the bullish trend continues. Technical indicators have left the overbought region are currently in neutral territory.
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