Posted By: Ilan Levy-Mayer Vice President, Cannon Trading Futures Blog
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From Hightower report:
DAILY COFFEE COMMENTARY7/22/2021 Frost damage significant; temps well below expectations (29) Another cold night for Brazilian Arabica growing areas added to this week’s frost damage, and that gave a significant boost to the coffee market as it is likely to further reduce their upcoming 2022/23 “on-year” coffee crop. Brazilian coffee trees have dealt with very dry conditions since the second half of 2020 and may have another La Nina to contend with later this year, so there was little room for any additional negative weather conditions. There is an increasingly strong case for coffee prices to climb above the 200.00 level. While it was highly unlikely before this week that it would approach the output totals seen in the last 2 “on-year” crops, Brazil’s 2022/23 Arabica production may be heading for their lowest “on-year” Arabica production since the 2014/15 season.
Near-term support for September coffee is at 180.00 and 176.90, with resistance is at 188.10 and 195.00
Daily Chart for your review below. CLICK for LARGER Image
. The market has provided multiple buy signals since early April.
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Tags: Coffee Futures
Posted in: Future Trading News