- The price of coffee marked a maximum at 248.20 on April 18 and a minimum at 144.10 on October 10, 2023, establishing a very defined operating range in the medium term.
- The production of Brazil and Vietnam has influenced coffee prices, being the largest exporters in the world.
The price of coffee has established an operating range that ranges from the minimum reached at 144.10 cents per pound on October 10, 2023 to the maximum of 248.20 reached on April 18. Based on this range we observe that the market is balanced, reaching the area with the greatest acceptance according to the Volume Profile.
Brazil and Vietnam are the key producers in the world
Climatic issues are a fundamental part of coffee production, taking into account that the “El Niño” phenomenon influences the supply of coffee in the Latam region. The most recent harvest data indicates high production and therefore downward pressure on the price. The International Coffee Organization reported an increase in exports of 8.1% on May 3 compared to the previous year.
Technical levels in the price of coffee
From a medium-term perspective, we note that the rejection of 248.00 reached on April 18 has led the market to the 50% Fibonacci retracement in confluence with the Volume Profile Control Point.
The closest level in the short term is at 193.00, being a pivot point and the low of the May 7 session. We observe the next support at 166.00, the minimum of the session of November 20, 2023, in confluence with the retracement at 78.6% Fibonacci.
The first resistance is at today's session high at 206.35. The next resistance is found at 234.57, the maximum of the session on April 25
Daily Coffee Chart
Coffee 30 minute chart
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
