The coffee market may go down from here, you are right, but it's not my Opinion. This move has to be reversed soon
The selloff you see was not accompanied by any Origins. Funds have resumed their short today and this drop doesn't have any sense. Origins have plenty of time to do a price fixation against September and Funds are the main actors in this free fall.
Other times Funds obligate Origins to sell, that is because we were close to FND or the currencies in Origins are very weak. But this Time Dollar is weak, it is not strong and the equation is a "risk-on" in the financial markets.
Coffee could be correcting for seasonality factors but the markets should have disgested that already. This market is within a long term trend down, but IMO we have seen the bottom on June 15th when we saw 94.55.
« Back to index