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IT'S A BULL MARKET
Posted by Admiral
on November 22, 2019, 5:47 am
the break >11330 represents a departure from the well worn pattern coffee has been living with for 2 plus years. that pattern saw the funds getting long then led to slaughter within 2 to 6 weeks under hedge pressure from origin. now the funds/managed money are adding to existing longs, profitable longs as opposed to adding to shorts as has been the practice. The EFP postings are declining indicating brazil is running out of ammo. Brazil's selling forward and pricing (selling futures)of coffee not even on the tree yet is very dangerous. Brazil has shipped heavily and the short selling is coming home to roost.
Even with the futures rally physicals still command big premiums over futures. To wit: futures still under valued, 125 KCH next target. Explosively bullish implications.