COFFEE PLUMMETS AND MOVES AWAY FROM 120 CENTS ON ICE
Arabica coffee loses the level of 120 cents per pound and sinks into negative technical field on ICE Futures US, pressured by falling oil prices and rising dollar against the real. The perception of a more comfortable global supply, with indications of improvement in the supply of milds (Colombia and Central America), and good pace of Brazilian exports weigh against prices.
The market shows some support above the mark of 200 periods, but remains technically vulnerable to new losses. The advance of Vietnam’s exports contributes to a more stratified market, with arabica gaining value over robusta. But broadly speaking coffee prices end up retreating after a bullish bubble late last year.
The next Brazilian crop is playing a prominent role again. Rains in early 2020 in coffee areas of Brazil reinforce a favorable outlook for Brazil’s 2020 season, the sense of a quiet supply, and the idea of negative adjustment in the price curve.