{"id":163015,"date":"2020-01-09T10:45:23","date_gmt":"2020-01-09T15:45:23","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=163015"},"modified":"2020-01-09T08:07:50","modified_gmt":"2020-01-09T13:07:50","slug":"coffee-analysis-rising-brazil-output-bearish-for-coffee-price","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/01\/coffee-analysis-rising-brazil-output-bearish-for-coffee-price\/","title":{"rendered":"COFFEE Analysis: Rising Brazil output bearish for coffee price"},"content":{"rendered":"
January 9, 2020<\/div>
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By IFCMarkets<\/a> –\u00a0<\/strong>Rising Brazil output bearish for coffee price<\/strong><\/p>\n

Coffee production in Brazil is forecast to rise this year. Will the coffee prices<\/a> continue falling?<\/p>\n

Brazilian farmers are expected to produce a record coffee crop in 2020. Brazil, world\u2019s largest producer of coffee, produced a record 62.6 million bags in 2018, followed by 57.6 million bags in 2019. Analysts forecast increasing Brazil production for 2020. Thus, the Dutch bank Rabobank forecast a 2020 output at 66.7 million 60-kg bags a month ago, and the research arm of the University of S\u00e3o Paulo \u2013 Cepea, forecast \u201cslightly\u201d more than 60 mln bags a few days ago. Expectations of higher output by world\u2019s top coffee producer is bearish for coffee. However International Coffee Organization forecast last month that world coffee production in 2019-20 marketing year will decline, resulting in a shortage of around 502,000 bags of coffee. Yesterday the ICO report stated global coffee output is estimated at 168.71 million bags in 2019\/20, 0.9% lower than last year. A 4.1% decline in arabica production was stated as the main reason. Expectations of lower global production are an upward risk for coffee price.<\/p>\n

\"COFFEE:D1<\/p>\n

On the daily timeframe the COFFEE: D1<\/b> is about to test the 50-day moving average MA(50) which is rising. Price has breached below Fibonacci 38.2 support level.<\/p>\n