The Arabica coffee futures contract for July delivery reached 125 cents per pound yesterday. The market is currently seeing a fundamental downtrend based on a series of surplus seasons. The current season is not an exception. The Brazilian (minor) harvest of coffee promises to be a record-breaking one.
Vietnam , the world’s second biggest coffee exporter is also reporting about improved production forecasts along with better weather conditions.
If you are interested in the dynamics of global coffee exports, please follow the link: http://www.ico.org/prices/m1.htm
Bearish factors:
· Excessive coffee production
· Record-breaking harvest of minor cycle in Brazil
· Better conditions in Vietnam
· Consumption decline in Europe
Bullish factors:
· Coffee plant diseases in Central America
· Oversold market conditions, according to the COT
The report is delivered by the Commodity Trading Department of Masterforex-V Academy.
