Surging Prices in Coffee Markets

​The New York coffee market surged last week and was clsoe to a new 7 year high. This is due to the winter frost that has occurred in Brazil's coffee growing areas last week and this has led to a number of conflicting estimates on the prospects and extent of damage that has been incurred for the Brazil 2022 and 2023 crops to come.

There is also news of another cold front heading towards the coffee growing regions toward the end of the week so this continues to provide volatility to the futures markets.  It was a firmer day on the commodity markets in general yesterday and we saw the US Dollar lose ground to a basket of other currencies. A weaker US Dollar is seen to be a bullish factor for many of the US Dollar based commodity markets when trading in other currencies.

The Sugar, Cocoa, Coffee, Corn, Soybean, Silver, Platinum and Palladium markets ended the day on a positive note, while the Wheat and Gold markets ended the day on a softer note. The New York and London coffee markets were off to a positive start yesterday and were supported by the further news of another possible frost event in Brazil providing additional upside momentum following on from the rally last week.

Both markets were seen to hit a resistance level during the early afternoon session as the markets dropped back from the highs made earlier in the day. Towards the close, the markets rallied again and both the New York and London coffee markets closed on a positive note. reaching the highest close in close to seven years.