الموقع واللغة

Zenfinex Global Limited شركة مسجلة ومرخصة من قبل هيئة الخدمات المالية في سيشيل تحت الرقم المرجعي: SD092.

Coffee Price Increases: Fundamental and Technical Factors Behind the Bullish Momentum

The futures contracts for coffee in New York (Arabica) continue their upward trend, reaching $312 two days ago, the highest level since 1997. Currently, they hover near the $310 mark. These contracts have risen by approximately 65% since the beginning of the year to date.

The reasons for these price increases are attributed to several factors, most notably concerns about crop yields among major producers, particularly Brazil and Vietnam – the world’s two largest coffee producers – which have been affected by climate change through heatwaves and droughts, in addition to issues in the global supply chain. This raises concerns about a slowdown in supply, which threatens to increase costs for both coffee producers and consumers.

From a technical standpoint, the indicators suggest that the upward trend in coffee futures will continue for the following reasons:

  1. A bullish or “golden” crossover between the 20-day moving average (in gray), which stands at around $271, and the 50-day moving average (in blue), which stands at around $262, on November 19, 2024. This indicates a bullish trend in coffee futures.
  2. The Relative Strength Index (RSI) currently stands at 80, indicating an overbought condition, suggesting positive momentum for coffee futures.
  3. The Positive Directional Indicator (DMI+) stands at around 42, while the Negative Directional Indicator (DMI-) stands at around 6. The large gap between these two indicators indicates strong buying pressure on coffee futures. More importantly, the Average Directional Index (ADX) is around 42, indicating strong momentum in the upward trend.

But the question that arises is: Will people addicted to coffee continue buying it after these noticeable price increases?

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.

Back

Popular Posts

Wall Street Hits Record Levels Amid Decline in Fear Index (VIX)

Overview of Last Week’s Key Economic Events

Washington sanctions on Russian oil companies ignite a new rally in crude prices

UK Inflation Report Below Expectations Pressures the Pound and Supports Gilts

Here are some related articles you may find interesting:

Market Insights​

October 28, 2025

Wall Street Hits Record Levels Amid Decline in Fear Index...

U.S. stock indices, specifically the S&P 500, Nasdaq 100, and Dow Jones, continued to reach record levels yesterday. The Volatility Index (VIX) fell to 15.62...

Market Insights​

October 27, 2025

Overview of Last Week’s Key Economic Events

Last week saw the release of several significant global economic data points. In the United States, inflation showed a slight slowdown, while both manufacturing and...

Market Insights​

October 24, 2025

Washington sanctions on Russian oil companies ignite a new rally...

Oil prices have risen by about 7% since the beginning of the week, and by about 10% from the low recorded on October 20 at...

Market Insights​

October 23, 2025

UK Inflation Report Below Expectations Pressures the Pound and Supports...

The headline Consumer Price Index (CPI) in the UK recorded an annual increase of 3.8% in September, as reported yesterday. This figure came below expectations...

Ready to Elevate Your Trading Journey?

Open a Taurex account and start trading today.

Live account Registration

1 Hour Trading Consultation

This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.