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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
