American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Investing

Robusta, Arabica coffee prices soar, corn, soybeans near death cross

by admin September 16, 2024
September 16, 2024
Robusta, Arabica coffee prices soar, corn, soybeans near death cross

Coffee price continued its strong surge this week, continuing a trend that has been going on for the past few years. Data by TradingView shows that coffee has jumped in the past seven consecutive months, reaching its highest point since 2011. It has soared by over 205% from its lowest level in 2020.

Robusta coffee futures have surged by about 400% from the lowest point in 2020 and is up by almost 100% this year. 

Corn, on the other hand, has risen in the last two consecutive months even as it remains 40% below its highest point level in April 2022. It is also hovering near its lowest point since April 2021.

Soybeans has also risen slightly and is hovering near its lowest level since December 2021 and is about 25% below the highest point in 2023. 

Coffee price is soaring

Coffee has jumped sharply in the past few months, helped by the ongoing weather issues in key countries like Brazil, Vietnam, Colombia, and Indonesia. 

The main reason for the surge is that Arabica and Robusta coffee brands are going through major supply disruptions. In Brazil, where an harvest is going on, production has been relatively weaker-than-expect.

Most notably, future supply prospects are at risk as the country goes through its worst drought in decades. Other countries like Vietnam and Colombia are also facing substantial droughts because of the impact of climate change.

At the same time, coffee is rising because of the ongoing laws by the European Union to ensure that coffee production does not come from places where deforestation has taken place. 

Analysts believe that coffee prices will remain at an elevated level for a while. Unlike corn and soybeans, new coffee trees take longer to grow and start producing beans. As such, while many farmers have started planting new crops, their impact in the market will take time.

Coffee price is also rising because of the ongoing logistics issues in the industry. Suez Canal, a key artery in global trade, has continued to see disruptions, meaning that farmers are adding these issues to their prices. 

There are no signs that coffee demand is rising in key countries like in the United States and China. 

Coffee price forecast

The monthly chart shows that coffee price has been in a strong bullish trend in the past few months. It has risen in the past seven straight months and the momentum is continuing. This is its longest winning streaks in years.

Coffee has crossed the important resistance point at $260, its highest swing in February 2022 and the upper side of the cup and handle pattern. In price action analysis, this is one of the most popular bullish signs in the market. 

Coffee has remained above the 50-month moving average, meaning that bulls are in control. Therefore, the price will likely continue soaring as bulls target the next key resistance point at $300. 

Corn rises after the WASDE report

Meanwhile, the price of corn has crawled back in the past few days. The closely-watched Teucrium Corn Fund (CORN) rose to $18.16, its highest point since July this year and over 6.7% from its lowest point this year. It has dropped by over 40% from its highest level in May 2022.

The most recent catalyst for corn prices was last week’s WASDE report, which is released by the US Department of Agriculture (USDA). In its report, the agency noted that corn would have smaller supplies, with beginning stocks being about 55 million bushels lower. Corn production in the US is expected to rise by 55 million bushels to 15.2 billion bushels. 

Corn price forecast

Turning to the weekly chart the CORN ETF peaked at $30.31 in 2022 and then dropped to $17, its lowest point in August. It has formed a death cross pattern as the 50-day and 200-day Exponential Moving Averages (EMA) have crossed each other. 

Corn has also moved below the 61.8% Fibonacci Retracement point. Therefore, the price will likely continue falling as sellers target the key support at $15.50, the 78.2% retracement point. 

Soybeans price analysis

SOYB chart by TradingView

The WASDE report estimated that the US production will drop by 3 milion bushels to 4.6 billion bushels this year. It also estimates that global soybeans trade willl jump to 181.6 million tons, helped by higher exports from Paraguay and imports from Argentina.

Turning to the weekly chart, we see that the soybeans price formed a triple-top chart pattern at $29.35 and then crossed below the neckline at $23.80 on May 30th. 

Soybeans is about to form a death cross as the spread between the 50-week and 200-week moving averages narrow. Therefore, the path of the least resistance is downwards, with the next point to watch being at $20, which is about 10% below the current level.

The post Robusta, Arabica coffee prices soar, corn, soybeans near death cross appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Citigroup stock needs to flip this price to continue its uptrend
next post
My last Nio stock price forecast was accurate: now what?

Related Posts

DIA ETF forecast: what next for the Dow...

November 27, 2024

Is Pi Network a genuine crypto project or...

September 26, 2024

Top crypto price predictions: Fartcoin, Ethena, Pi Network

March 24, 2025

Here’s why the LVMH share price may rebound...

February 27, 2025

1 REIT stock to buy, 1 to sell:...

September 12, 2024

Opera stock price analysis: more upside, but a...

February 28, 2025

USD/BRL: Carry trade opportunity as Fed and BCB...

November 4, 2024

Here’s why I’d sell SCHD and JEPI ETFs...

April 22, 2025

Grid Battery to begin the 2024 Exploration Program...

March 14, 2024

Top crypto coins to buy as the DXY...

March 10, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Interview: Strategic location gives Brazil Potash cost advantage in domestic fertiliser market, says CEO Matt Simpson

      June 1, 2025
    • Canada’s Q1 GDP expands by 2.2%, driven by exports spike ahead of potential US tariffs

      June 1, 2025
    • President Trump to host farewell for Elon Musk as DOGE leader steps away

      June 1, 2025
    • UK’s digital banks face divergent fortunes: Starling stumbles, Monzo and Revolut soars

      June 1, 2025
    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025

    Categories

    • Business (3,022)
    • Investing (2,459)
    • Latest News (1,994)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved