The reaction on ICE together with the volatility in the dollar and the withdrawal of sellers allowed for the increase in physical coffee prices. The best coffees were trading above the level of BRL 1,000 a bag again, with good coffee from the south of Minas Gerais ending November at BRL 1,010 a bag. A nominal gain of 1%. Fine coffee from Cerrado ended November at BRL 1,060 a bag, rising 3% over the month.
Highlight on the performance of Rio cup in Matas de Minas, which rose 17%, closing November at BRL 890 a bag. Low availability together with the greater external demand justify the strong valuation. Finally, conillon 7/8 in Colatina, Espírito Santo, which rose 5% and closed last month at BRL 595 per 60 kg bag. The purchasing dynamics in the domestic roast and ground industry continue to support conillon.
New York technical review
The Mar/23 position breaks the level of 170 cents and gains short-term technical strength on ICE US. The market is already working above the 21-period average and flirting with the 23.6% Fibonacci retracement, which, once surpassed, would give the movement a technical boost. The new challenge is to move above the graphic top at 178.20 and then recover the level of 180 cents, so renewing the bullish dynamics toward new resistances. On the downside, watch out for the 170-level support and, further below, the 160-cent level. The market opened a good distance from the graphic bottom at 154.05 cents.