MILANO – Arabica coffee futures ended higher Thursday. It was supported by the cold weather and news of additional measures to help the coffee sector in Brazil. The active contract for July delivery settled 375 points higher at 147.90 cents a pound.
The cold front
It sent temperatures as low as 2 C. in some high areas of southern Minas Gerais this morning. That caused concern amid participants inducing speculative buying and short-covering.
Close to the end, Reuters reported that the cold front did not cause any damage. According with a coop in the region of Pocos de Caldas, where temperatures registered a low of 3.1 C.
The market was helped also by declaration of the minister of agriculture Antonio Andrade
He said that the government is studying additional measures to the raise of the minimum price to help the coffee producers. The open interest increased 1,160 lots to 160,563 lots, evidencing the speculative buying encouraged by the weather in Brazil. The July chart shows the market in an extension phase, with resistance at 150 and support at 144.50.
Ascension Day
And with many centres in Europe closed the Robusta market simply marked time through the early part of the session; turnover barely touching 1,000 lots by mid-day.
The subdued tone ceased abruptly however following the release of better than expected jobless claim numbers out of the Fed and as New York continued its orderly rise, London decided to play catch-up.
An aggressive burst of volatility
It jolted traders back into consciousness as technical buy-stops were elected into a near vacuum of selling. Origin offers did start to arrive pretty quickly after the initial push but by then momentum had engaged to the upside.
The one questionable aspect of the move is the volume; which at just over 14,000 lots leaves plenty of room for confirmation. Otherwise very impressive.
Potete scaricare il file con le tabelle QUI.
