Weather Also Hits Coffee Prices That Jump to Highs Since November 2018

Currently, coffee is trading at 111.00, still posting a rise of 1.0% from the previous close. A close above the 110.00 level will be key to extend gains in the middle term.
Mauricio Carrillo
Weather Also Hits Coffee Prices That Jump to Highs Since November 2018
Weather Also Hits Coffee Prices That Jump to Highs Since November 2018

Grains such as soybeans, corn, and wheat are trading depressed on Tuesday as investors are digesting the latest planting and emergence reports. On the other side, coffee rallied to highs since November amid cold weather in Brazil.

According to the USDA, soybean crop was 92% seeded as the last week, below the 99% average in the previous years. Emergence reached the 83% level, also behind the average of 95% for this time of the year. 54% of US beans were rated good or excellent.

Corn is finally planted with 94% of the crop emerged last week. 58% was in good or excellent conditions. Winter wheat harvest is well below the average as it was finished by 30% last week, down of the 48% average.

Coffee in danger as Brazil faces cold weather

Coffee prices July 2 daily chart

Arabica Coffee is trading higher on Tuesday as Brazil is forecasting cold snap in the country that could put in danger crops in the coffee producer regions of southern Brazil.

“Much below average temperatures are expected Friday,” weather forecaster Radiant Solutions said in a note, “which will raise the threat for frost.”

Coffee prices jumped to 114.00, its highest level since November 2018, on Tuesday as investors are digesting news from Brazil related to cold weather forecast. However, the grain of coffee couldn’t sustain prices, and it started to fall back.

Currently, coffee is trading at 111.00, still posting a rise of 1.0% from the previous close. A close above the 110.00 level will be key to extend gains in the middle term.

Grains report for July 2, 2018.

Soybeans are trading down for the second day as investors are closing long positions gradually. The Uni is now extending losses beyond the 200-day moving average level at 8.750. Currently, soybean’s prices are 0.85% down on the day at 8.740.

Technical indicators for soybean are pointing to the south with the 8.735 acting as short term support. Below there, the unit will face buying zones at 8.630, 8.530, and 8.420.

Corn has finally found support at the 4.060 area after falling five consecutive days from the 4.500 area. Corn prices are now at 4.100 as the unit is attempting a rebound from lows. However, technical studies are signaling more losses in the short term. It seems that the 4.000 is just waiting for the pair.

Wheat is trading down for the fourth straight day as the unit broke below the 5.000 level on Tuesday to trade as low as 4.955, its lowest price since June 10. Currently, Wheat prices are moving at 4.980, 1.40% negative on the day.

Sugar is down for the third day in a row as the unit is extending losses after rejecting the 0.1260 area on June 28. The unit is now testing the 0.1200 area and the 50-day moving average at 0.1205. It is a fundamental level as it would change the unit to bearish in the middle term. Technical studies are signaling consolidation in the short-term but more drops in the middle time.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.