{"id":97068,"date":"2016-10-21T06:26:56","date_gmt":"2016-10-21T10:26:56","guid":{"rendered":"http:\/\/countingpips.com\/?p=97068"},"modified":"2016-10-21T06:26:56","modified_gmt":"2016-10-21T10:26:56","slug":"coffee-technical-analysis-lower-crop-estimates-support-coffee","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2016\/10\/coffee-technical-analysis-lower-crop-estimates-support-coffee\/","title":{"rendered":"COFFEE Technical Analysis: Lower crop estimates support coffee"},"content":{"rendered":"
October 21, 2016<\/div>
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By IFCMarkets<\/a><\/p>\n

Lower crop estimates support coffee<\/h3>\n

Coffee output estimates of major producers for 2016-17 are being downgraded due to unfavorable weather conditions. Will coffee <\/a> continue rising?<\/p>\n

The research group Procafe reported its first forecast for 2017 output for Brazil, the world’s top coffee-producing nation. It estimates 39m 60-kg bags of both arabica and robust beans will be produced by Barzil, about 20% lower from the near 49m bags harvested this year. Earlier the International Coffee Organization had forecasted lower estimates for major producing countries. The output in Vietnam, the second largest coffee growing country, is expected to fall in 2016-17 due to dry weather prevailing since the beginning of the year. And the La Nina weather phenomenon is expected to reduce the 2016-17 coffee crop of the third ranked producer Colombia. Lower crop forecast by Procafe, which has a reputation for conservative estimates, supports the bullish outlook for coffee based on the International Coffee Organization estimates.<\/p>\n

\"Coffee\"<\/p>\n

On the daily chart COFFEE:D1 <\/b> has been rising the last two weeks following the pullback after hitting 19-month high on September 22. It is above the 200-day moving average MA(200) as well as the support line of uptrend.<\/p>\n