Coffee Futures—Coffee futures in the December contract settled last Friday in New York at 132.45 a pound while currently trading at 113.90 down over 1800 points for the trading week as prices have now hit a 4 week low.
At the current time I am not involved as I do not have any soft commodity recommendations, however I do believe the multi-decade low that was hit on June 15th at 96.90 will hold as I will be looking at a bullish trade in the coming days ahead.
At the present time the risk would be around $7,000 which is way too much so be patient I do think a bottom has been formed, but rain has come back into key coffee growing regions in the country of Brazil as that has sent prices sharply lower here in the short-term.
Coffee prices are trading below their 20 day but still slightly above their 100 day moving average as the trend is mixed to lower so be patient while trying to take advantage of these depressed prices which this situation has become as I will not go short.
CHART STRUCTURE: POOR
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