Jul-23 FCOJ rallied over the week of May 22, breaking the prior high of 279.85 cents and settling May 24 at a fresh high of 293.90, up 32 percent MOM and up 74 percent YOY. After two closes above the upper Bollinger Band, the contract slipped slightly May 25, back below that line to 290.50.

Supply tightness remains the overall story for the market, though higher production from Brazil and flagging demand on high prices might offer limited downside potential.

The Sep-23 FCOJ contract broke prior resistance around 271.35 cents to a fresh high of 276.30 May 24, falling back below the upper Bollinger Band to close May 25 at 272.85.

For both Jul-23 and Sep-23 FCOJ, RSI is neutral to bearish; MACD and the stochastic are bullish, with the latter now showing an overbought signal. Volatility was at two-month highs. FCOJ trading volume spiked midweek.

The Brazilian real is back in the lower half of its seven-week trading range vs. the U.S. dollar.

The full version of this commentary appeared on our IQ platform May 25, 2023. Further information, statistics, and pricing for the FCOJ market are available to IQ subscribers. Learn more about becoming a subscriber.

Source: 123rf.com
Posted by: Information Services
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