NY- Neutral- Once more, it can be noted that coffee is being driven primarily by the USD rather than physical market fundamentals. Fridays rally was helped by the weaker dollar as the Euro attempted to claw back ground. As we look to May, the market has managed to climb above the stability zone at 130, thus halting the decline for now. Below here could see a fall to 124. To the upside, demand should be capped at 133 then 137.
Liffe- Neutral- Shorts were squeezed on Friday aided by month end rolling lifting Mar/May somewhat. As we look to May, The contract has clambered above the 1280 stability zone, and aided by a weaker dollar, momentum might continue to give the market a lift. The next hurdle to overcome is 1300, a break and close here giving longs a breather and maybe a further short squeeze. A break of 1335 remains the target to set sights northward. To the downside, support lies at 1250.
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