General Comments:
Prices closed a little higher in recovery trading. The funds were not as aggressive in selling, and some new Business was noted by US brokers.
Overall, the market is still dealing with less production than demand for the coming year. London and Robusta prices in general continue to be the leaders to the upside.
Cash markets in Central America showed good offers for old and new crop Coffee. Temperatures in Brazil should be warm. It has turned dry again, and there is concern that it is too hot and dry for good flowering.
Most producers in the region talk of losses and more traders feel that production in Brazil could be less than 50 million bags. The crop losses are reported due to some extreme drought, then some freezes in Coffee areas of Brazil Robusta production is improving for the next crop in Vietnam with improved rains. It has been wet in Indonesia and the harvest there has been affected. Producers in Central America are expecting mixed production this year, but most seem optimistic on good production potential. Conditions seem generally good there right now.
Overnight News:
Certified stocks are a little higher today and are about 1.270 million bags. The ICO composite price is now 136.04 ct/lb. Brazil will get mostly dry conditions. Temperatures should average near to below normal today, then near to above normal over the weekend Colombia should get scattered to isolated showers. Central America and southern Mexico should get mostly dry conditions. Temperatures should average near to above normal.
Chart Trends:
Trends in New York are mixed. Support is at 147.00, 145.00, and 143.00 December, and resistance is at 153.00, 155.00 and 157.00 December.
Trends in London are up with objectives of 1970 and 2010 November. Support is at 1930, 1890, and 1870 November, and resistance is at 1960, 1970, and 2000 November.
Trends in Sao Paulo are mixed. Support is at 174.00, 170.00, and 167.00 December, and resistance is at 180.00, 183.00, and 186.00 December.