Arabica Futures Seen Recovering from Earlier Weakness CoffeeNetwork - Arabica prices on the InterContinental Exchange were trading 1.15 lower for the March contract, last seen at 181.65. Volume was light with 9,325 contracts at the time of writing.
Arabica futures had a weak opening when speculative selling adding pressure to the market, which touched a six-week low. Since then, prices have started to recover. Favorable weather in Brazil for key coffee producing areas continues to improve crop conditions. Forecasts for the developing crop should circulate in the coming weeks and could be higher than initially expected due to the better rainfall. The annual rebalancing of the index fund this month should add some pressure, as they are expected to reduce their position considerably. Technically, the March contract has found initial support at 179.50, the lower band of the Bollinger. Oscillators near over-sold conditions which are making the market vulnerable to a correction the upside. Quiet from Colombia with the country observing a National holiday today.
Robusta futures are higher, as the underlying fundamental sentiment is dominantly bullish as expectations of lower supplies are coupled with higher demand.
Commodities are mostly lower today.
Brent Crude Oil fell 4.29% to 75.38 and Spot Gold Futures also slumped 0.91% to 2,026.90.
The Dow Jones Industrial Average ticked 0.38% lower to 37,323.86 and the Stoxx Europe 600 Index was last seen at 477.19, up 0.11%.
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