Photo by Anastasiia Chepinska on Unsplash

Coffee prices fell by about 1.1% and traded around $2.1 per pound by technical selling at the previous month’s upper-value close area which might lead the market towards a rotation to the lower value extreme on the hourly interval. The month’s VWAP or prior intraday VWAP close level on the way down might be supportive for buyers as the monthly interval found buying around the Year’s lower value extrema and decade’s upper developing standard deviation level which is giving the lower periodicities a potential slightly more bullish bias for the upcoming weeks and months. 

The price is supported by tight inventories and persistent concerns about lower coffee yields in top producer Brazil while ICE-monitored coffee inventories dropped to a new 23-year low of 591,959 bags. The International Coffee Organization (ICO) has decreased its global 2021/22 supply estimate to a deficit of 3.13 mln bags vs 1.2 mln bags as well as lowered its forecasts for global production and pointing to more global consumption which might be supportive of the price of Coffee for the median to long-term perspectives. 

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