General Comments Futures were lower after starting the day off with a rally attempt. The buying interest did not last,so futures went lower and are testing contract lows again. There did not seem to be much to talk about in the market yesterday. Funds and other speculators have been the best sellers. Some roasters buying is seen on a scale down basis, but it is not big enough buying to force a trend change. Traders sense underlying interest in buying the market amid ideas that the bearish news is finally priced in, but buying the market has only led to losses in recent months. Origin is offering in Central America and is still finding weak differentials. Business is getting done, with Honduras the best seller. Traders anticipate big crops from Brazil and from Vietnam this year and have seen no reason to cover the short position in a big way. New York traders expect another bumper crop in Brazil. Robusta continues to hold as Vietnamese producers and merchants are not willing to sell at current prices and are willing to wait for a rally. Prices instead fell in Vietnam last week in response to price weakness in London and no differential improvement.
Overnight News: Certified stocks are slightly lower today and are about 1.974 million bags. The ICO composite price is now 112.03 ct/lb. Brazil will get drier conditions. Temperatures should be near to above normal. Colombia should get isolated showers. Central America and southern Mexico should get isolated showers or dry conditions. Vietnam will get showers in the north starting tomorrow.
Chart Trends: Trends in New York are mixed to down with no objectives. Support is at 116.00, 113.00, and 110.00 May, and resistance is at 112.00, 122.00 and 124.00 May. Trends in London are down, with objectives of 1650 May. Support is at 1700, 1670, and 1640 May, and resistance is at 1760, 1780, and 1800 May.