Daily Coffee Market Outlook

NY- Neutral- Lack of volume was the defining characteristic yesterday and the board closed relatively unchanged despite a big rally of the greenback against nearly all the majors. May remained within the current range of 130 to 133; and with a lack of macro data today, we expect this trend to continue in the short term. Levels to watch today then are 130 and 124 to the downside; to the upside, look for resistance at 133 and 137.

Liffe- Neutral- Despite USD strength yesterday, May manged to close $10 up for the day and hold above the 1280 level. This should add support to what is effectively a 2 month downtrend. Further closes above 1300 are needed to stabilise the market further but significantly, 1335 will need to be broken to turn sentiment north. To the downside then, look for support at 1280 followed by 1250.