Daily Coffee Market Outlook

NY- Sell (1)- Yesterday saw miniscule volume accross the board as traders effectively shut-up shop. Weak housing data in the US attracted some interest as small specs covered shorts amid the weaker dollar but the market was caught in a very tight range. Going into year end, we see the prospect for continued weakness as March holds below 144.00 once more, and this could just provide the trigger for some of the highly exposed funds to dump some of their longs and re-balance the books somewhat while waiting for fresh developments going into 2010. Resistance lies at 144, followed by 146.5 and 150. To the downside, we see support at 140-138, followed by 135 and crucially 133.

Liffe- Sell (1)- Ldn managed respectable volume yesterday as the recent market lows keeps traders interested. March failed once again to close above 1340, the key stability zone and as such we see the possibility of further weakness going into year-end. Todays flows are likely to be made up of book-rebalancing and position squaring but following the good volumes we have seen on Liffe over the last week, don't rule out a flurry of action to move the mkt before todays close. Key levels to watch then are the 1340 resistance level, followed by 1425 much further off in the distance. To the downside, 1300 should provide some semblance of support, but other than that, there is very little notable technical levels of note.