COFFEE General Comments: Futures were sharply lower as the Real moved much lower against the US Dollar. Ideas of increased offers from Brazil were helped by the Real weakness, although there were no real reports of big selling. The Real is moving to new lows and this has decreased the effectiveness of the Brazil government program for world markets as the support is made in Rais. Differentials held firm on a lack of offer from producers for both the old crop and the new crop. Coffee appears to be available in Central America as farmers and mills clear inventories before the next harvest, but none of the new crop is being offered yet. Current crop development is still good this year in most production áreas of Latin America and also appears to be mostly good in Asia. Central America crop áreas remain too dry, but conditions are said to be good overall. Colombia is still reported to have good conditions. Harvest conditions are good in Brazil. Overnight News: Certified stocks are higher today and are about 2.794 million bags. The ICO composite price is now 115.16 ct/lb. Brazil should get dry conditions. Temperatures will average near to above normal. Colombia should get scattered showers, and Central America and Mexico should get showers, and rains. Temperatures should average near to above normal. Chart Trends: Trends in New York are down with objectives of 112.00 September. Support is at 115.00, 112.00, and 109.00 September, and resistance is at 117.00, 120.00, and 123.00 September. Trends in London are mixed to down with objectives of 1820 September. Support is at 1860, 1850, and 1820 September, and resistance is at 1900, 1910, and 1940 September. Trends in Sao Paulo are cown with objectives of 132.00 and 122.00 September. Support is at 138.00, 135.00, and 132.00 September, and resistance is at 145.00, 147.00, and 150.00 September.
Posted on: Wed, 21 Aug 2013 15:51:11 +0000
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