Technical gauge predicts coffee will rise
December 07, 2007
Dec 07, 2007 -- /prbuzz/ --The price of robusta coffee is forecast to rise after a technical gauge pointed to current prices falling to a level likely to stimulate buying.

The 14-day relative strength index (RSI) is used by traders and investors to measure the momentum of price movements and robusta coffee is now rated at 25.

Jeff Cooper, an analyst at Ambrian Commodities in London told Bloomberg: "The RSI is very low. A reading of below 30 means it's going to get bought."

On the Liffe exchange in London, the price of robusta for March delivery has been falling for the past three weeks based on dry weather forecast for Vietnam speeding up delivery.

Related cocoa and sugar prices both rallied today, with cocoa for March delivery up 0.7 per cent and refined sugar marginally higher.

Robusta coffee (or coffea canephora) accounts for around 25 per cent of the world's coffee production and is significantly cheaper than the higher quality Arabica coffee due to lower production costs.

Vietnam is the world's biggest grower of robusta coffee beans.

Further analysis of market and environmental factors on the global price of coffee could be supplied by Aranca, an end-to-end provider of on-demand, custom investment, business and economic research.

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About the Press Release
London, Thursday, December 06, 2007 -- ARANCA NEWSTRACK – (aranca)


 
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