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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
COMMODITIES
- In the past 9 months, we have seen that the significant deceleration in most of the EM countries’ economic activity and the contraction in Chinese liquidity (TSF 12M Sum) have left some China-sensitive commodities vulnerable (i.e. copper, iron ore…).
- However, momentum has remained firm in some commodities such as coffee, which production has been significantly impacted by the supply chain disruption and natural phenomenon.
- Arabica coffee has surged by over 150% since its June 2020 low and was recently trading to its highest level since October 2011 after breaking above its 61.8% resistance (222,40) in the end of November.
- The drought in Brazil this year has been one of the major factors behind the increase in prices, with some of the biggest coffee farms in the world receiving less than half of the usual rainfall that they were expecting.
- According to analysts, drought and severe frost are estimated to have destroyed over 20% of Brazil’s coffee plants (Brazil accounts for half of the world total supply).
- Next resistance to watch on the topside stands at 254.45, which represents the 76.4% Fibo retracement of the 86.75 – 306.25 range, followed by 291.75.
- Key resistance stands at 306.25 (June 2011 high).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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