Chart of the day - COFFEE (23.02.2021)

8:47 AM February 23, 2021

Coffee prices surged yesterday and reached a 14-month high. Wet weather forecasts for major cultivation areas in Brazil are seen as a prime reason behind the surge. Excessive rainfall over the next two weeks is expected to cause local floodings and may damage trees. Apart from that, reports from big food companies, like for example, Nestle show that demand for coffee holds firm amid lockdowns. Combination of the aforementioned exerts big upward pressure on coffee prices. COFFEE surged around 4.5% yesterday and broke above the upper limit of the upward channel. Commodity briefly traded above 135.00 - at the highest level since mid-December 2019. 

COFFEE rallied 4.5% yesterday and reached the resistance zone ranging below 135 mark. Source: xStation5

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