Arabica Coffee prices hit 47-year high while oil, silver prices slip
Arabica Coffee prices hit 47-year high amid global supply crunch while oil, silver prices slip.
Arabica coffee futures hit levels last traded in 1977
Mounting global supply concerns caused by a severe droughts in Brazil, the world’s largest coffee grower, and Vietnam, another significant producer, have led to a spike in the price of Arabica coffee futures.
These have risen to 323.05, a level last traded in 1977! The April 1977 all-time high at 339.90 represents a possible upside target. If overcome, the 350 region may be reached as well.
Support can be seen around the 1997 peak at 308.90, followed by the minor psychological 300 region and the September 2011 high at 290.85.
Brent crude oil price drops on Israel-Hezbollah ceasefire deal
The Brent crude oil front month futures price dropped from last week’s 74.95 high, made marginally below its 74.97-to-76.16 resistance zone, to the 72.00 region amid Middle east de-escalation. Around the 72.00 level the Brent crude oil futures price has been supported over the past three days.
Below Tuesday’s 71.65 low lies the key technical support at 70.64-to-69.91, the October-to-November lows.
Minor resistance sits at the 14 November high at 73.03 and further up is seen along the 55-day simple moving average (SMA) at 73.98.
Spot silver weighs on support
The spot silver price dropped in line with the gold prices on de-escalation in the Middle East with the mid-November low at $29.68 offering support. If fallen through, the early August high at $29.22 would be in focus with the 200-day SMA at $29.08.
Minor resistance can be found at the 21 November $30.65 low and along the October-to-November downtrend line at $30.88. While the next higher 19 November high at $31.54 and the 55-day SMA at $31.66 aren’t bettered, downside pressure should retain the upper hand.
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