Have Coffee Prices Bottomed ?
Coffee Futures--- Coffee futures in New York this week saw volatile trading action every single day well closing on a sour note this Friday afternoon down around 300 points in the September contract closing at 155.80 still within striking distance of new contract lows after an impressive day yesterday with most the commodity market sharply lower coffee finished 700 points higher looking like a possible bottom is forming before profit-taking took prices back down once again. Coffee prices have been the only commodity that is not seen at least a short term bump up in price but in my opinion I believe coffee prices are bottoming here in the low 150 level which is down around 33% in 2012 all on a pessimistic outlook in Europe and China causing prices to consistently grind lower except in the last week where there looks like there is major support right that 150 level. Coffee volatility is very low historically at this point so if you're looking at possibly enter this market take a look at the put or call options because the premiums are much lower than they have been in recent memory allowing you to trade coffee minimizing your risk to what you purchase the premium for. I do think if you're a long-term investor and coffee prices head lower from these levels I would take a look at possibly taking a long position and try to take advantage of these relatively cheap prices hoping that the European and Chinese economies will stabilize improving demand. If you are looking for a futures broker feel free to contact Michael Seery at 800-615-7649 and he will be more than happy to help you with your trading.
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