Coffee Futures—Coffee futures in the July contract is trading higher by 210 points or 1.39% currently at 153.10 a pound continuing its bullish momentum looking to make new highs possibly this week.
If you take a look at the daily chart the uptrend line remains intact as prices are still trading above their 20 & 100 day moving average as the trend remains strong to the upside as I see absolutely no reason to be short as historically speaking I still think prices look cheap. I have been recommending a bullish position over the last couple of months from around the 126 area and if you took that trade continue to place the stop-loss under the 10 day low standing at 143.85 on a closing basis only as the proper exit strategy.
Fundamentally speaking the Green Coffee Association (GCA) reported late Monday that U.S. Apr green coffee inventories fell -11.6% y/y to 5,62,567 bags.
Arabica coffee also has support due to excessive dryness in Brazil along with disruption of Colombian coffee exports as roads to ports in Colombia remain blocked. The Colombian Federation of Coffee Growers last Thursday said that road blockades continue to be seen in Colombia, with delays in coffee exports already exceeding 500,000 bags.
CHART STRUCTURE: EXCELLENT
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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