Coffee To Average USc200/lb In 2012

In the short term, we believe the recent break below short-term support coming at around USc225/lb is a bearish signal. A weekly close below support has confirmed the break and we target a move down to the bottom of the trend channel at around USc200/lb. The recent correction in coffee prices is linked to 40% higher-than-expected coffee exports from Vietnam in November as well as increased output expected for 2011/12. Also, as export supply from Brazil has come online in recent months and will continue to do so in December, the coffee market is currently well supplied compared to previous

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