COFFEE General Comments: Futures were higher on speculative selling tied to the Brazilian Real moves and weakness in London. Arabica cash markets seem quet right now and roasters inthe US are showing little interest in buying. There is talk of increasing offers of Robusta from producers as they apparently did not sell when prices were much higher. Reports indicate that Vietnam is getting beneficial rains right now. However, the Arabica market does not show any real changes. Most sellers, including Brazil, are quiet and waiting for differentials or futures to get stronger, and mostly are waiting for futures to move higher. The currency moves are making up for the lack of positive moves in the Coffee market. Buyers are waiting for prices to drop even more, but will buy if the differentials offered are good. Brazil weather is forecast to show some showers for this week, but no cold weather. Current crop development is still good this year in Brazil. Central America crops are too dry for good new crop flowering. Colombia is reported to have good conditions. Overnight News: Certified stocks are slightly lower today and are about 2.749 million bags. The ICO composite price is now 121.28 ct/lb. Brazil should get dry weather. Temperatures will average near to above normal. Colombia should get scattered showers, and Central America and Mexico should get mostly dry conditions away from some showers in Eastern Mexico and northern Central America. Temperatures should average near to above normal. Chart Trends: Trends in New York are mixed. Support is at 125.00, 122.00, and 119.00 July, and resistance is at 133.00, 135.00, and 138.00 July. Trends in London are down with no objectives. Support is at 1830, 1800, and 1770 July, and resistance is at 1870, 1895, and 1920 July. Trends in Sao Paulo are mixed. Support is at 155.00, 153.00, and 150.00 September, and resistance is at 161.50, 166.00, and 170.00 September.
Posted on: Fri, 07 Jun 2013 16:25:23 +0000
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