Coffee getting stuck in the filter
With coffee prices reaching highs that have previously been rare, the market is at an impasse. With the Fed meeting at the beginning of November, the more current possible catalysts and triggers are related to the climate
Precipitation forecast 2022
Worth noting is
that Arabica is the most-grown coffee in the world. It is mainly produced in
Brazil and Colombia, but there are others. Most notable is the Robusta bean,
mainly produced by Asian countries close to the Pacific Sea, such as Vietnam
and Indonesia. While Arabica is the bean of choice for the United States,
Robusta has more European sales.
Storms and
hurricanes have threatened to destroy crops and hurt production in Brazil and
Colombia. Still, with forecasts looking wet and prices near all-time highs, it
appears reasonable that supply will surpass demand, pushing coffee prices back
toward lower levels in the past five years.
Coffee “C” futures (USD per ounce), daily one-year price chart
Bull & Bear sertifikaatti
Coffee “C” futures (USD per ounce), weekly five-year share price chart
Source: Barchart. Note: Past performance is not a reliable indicator of future results.
The full name for abbreviations used in the previous text:
EMA 9: 9-day exponential moving average
Fibonacci: There are several Fibonacci lines used in technical analysis.
Fibonacci numbers are a sequence of numbers in which each successive number is
the sum of the two previous numbers.
MA20: 20-day moving average
MA50: 50-day moving average
MA100: 100-day moving average
MA200: 200-day moving average
MACD: Moving average convergence divergence
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