Robusta coffee may resume this year's drop
Friday, 18 December 2009
LONDON, Dec 17 (Bloomberg): Robusta coffee may resume this year's decline toward $1,300 a metric ton after approaching the high of a downward trend channel that started in September, according to technical analysis by Newedge Group.
Robusta coffee for March delivery is "stumbling at resistance at $1,425 and it may very well be more of a waiting game as the upper channel line declines towards prices," Veronique Lashinski, an analyst in Chicago, said in a December 15 report. "A close below $1,385 would point to a decline toward $1,350 and to an immediate resumption of the decline."
Robusta futures have dropped 11 per cent this year, and on June 25 fell to $1,250 a tonne, the lowest level since the 10-ton contract started trading in January 2008. Vietnam is the largest grower of the beans.
Robusta coffee for March delivery is "stumbling at resistance at $1,425 and it may very well be more of a waiting game as the upper channel line declines towards prices," Veronique Lashinski, an analyst in Chicago, said in a December 15 report. "A close below $1,385 would point to a decline toward $1,350 and to an immediate resumption of the decline."
Robusta futures have dropped 11 per cent this year, and on June 25 fell to $1,250 a tonne, the lowest level since the 10-ton contract started trading in January 2008. Vietnam is the largest grower of the beans.