Coffee Prices Hit A 7 Week High

Coffee Prices Hit A 7 Week High
Coffee Prices Hit A 7 Week High

 Coffee Futures—Coffee futures in the May contract is trading higher for the 3rd consecutive session sharply higher this Tuesday afternoon in New York currently trading at 120.85 a pound up 525 points or 4.58% hitting a 7 week high.

Concerns of recent heavy rain in Minas Gerais, Brazil’s largest arabica coffee-growing region is also positive for coffee. Somar Meteorologia reported Monday that rainfall in Minas Gerais measured 96.8 mm in the past week or 156% of the historical average as those heavy rains saturated Brazil’s coffee fields and may curb coffee yields.

At the current time I am not involved as the risk / reward is not in your favor as I will keep a close eye on this market for a possible pullback in price therefor reducing the monetary risk, however I am certainly not recommending any type of short position as that would be counter trend trading as the 100 level continued to hold once again. Coffee prices are now trading above their 20 and 100 day moving average as the trend has turned to the upside as the volatility certainly is expanding as well so be patient as we could be involved soon.

TREND: HIGHER

CHART STRUCTURE: POOR

VOLATILITY: INCREASING

 

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

 

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