Coffee Traders Forum
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Re: quick fundamental overview please?
No change in the crop. If anything the weather has been dry again as of late, further dinging an already bad situation. Market stuck in a stalemate of poor production vs poor demand due to covid. This month's weak price action has coincided with both an acceleration in EU and Brazilian covid cases which have bid the dollar and weakened the Real, which has exacerbated the down move. Also commodities are losing some allure here as you can see in charts across the space. It's a very high correlation environment as you can see when you look at coffee vs the FX markets or coffee vs cocoa, which have had incredibly overlapping charts since July.