Arabica Coffee Prices Forecast Week August 24-28 2015- Coffee prices fell sharply on Friday, dropping to a three-week low, as the currencies of major coffee producing regions dropped against the dollar.
Arabica coffee for December delivery fell 4.6% to $1.2635 a pound on the ICE Futures U.S. exchange, with the Colombian peso, the Brazilian real and the Vietnamese dong all falling against the dollar. The contract was on track for its biggest daily drop since May 21.
Brazil and Colombia are the largest producers of arabica coffee in the world, and Vietnam is the largest producer of robusta coffee, a more acerbic bean typically found in instant coffee. When currencies in those regions drop against the dollar, it encourages selling to take advantage of favorable exchange rates for producers.
We estimate that the price movements of Arabica coffee futures on ICE Futures US in New York at the next trade still further in bearish pattern. Technical indicators medium and long term is still expecting a continued decline in commodity prices.
The price of Arabica coffee futures on ICE Futures US in New York has the potential to test the strong support level at 1.2400 dollar positions and 1.2300 dollar. While the level of resistance that will face if there is no further rise in the position of 1,353 dollars and 1,404 dollars.
Arabica coffee for December delivery fell 4.6% to $1.2635 a pound on the ICE Futures U.S. exchange, with the Colombian peso, the Brazilian real and the Vietnamese dong all falling against the dollar. The contract was on track for its biggest daily drop since May 21.
Brazil and Colombia are the largest producers of arabica coffee in the world, and Vietnam is the largest producer of robusta coffee, a more acerbic bean typically found in instant coffee. When currencies in those regions drop against the dollar, it encourages selling to take advantage of favorable exchange rates for producers.
We estimate that the price movements of Arabica coffee futures on ICE Futures US in New York at the next trade still further in bearish pattern. Technical indicators medium and long term is still expecting a continued decline in commodity prices.
The price of Arabica coffee futures on ICE Futures US in New York has the potential to test the strong support level at 1.2400 dollar positions and 1.2300 dollar. While the level of resistance that will face if there is no further rise in the position of 1,353 dollars and 1,404 dollars.
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