Exchange market news, coffee. Columbian problems of coffee transportation and supply increase the risk of bullish market trend. As a result, this year coffee production during will hardly reach 8.1 mln. bags, which is 900 ths. less than during the previous year and 1.1 mln. less than predicted by the National Federation of Coffee Growers. Brazilian forecast remains the same – shortage of production during 2012-2013.
It is already the second day of speculation at sugar market towards the rise of consumption, which has also influenced coffee market and resulted into a bounce from a strong level of support 220. Although we are still in the consolidation stage ranging from 220 to 250, Masterforex-V Academy Department of Derivatives Trading supposes that lower temperatures in southern hemisphere will become a catalyst of the bullish rally, and as soon as this trend is passed and an upward trend starts price pullback can be started in order to gain profitable positions.
