Coffee Futures Month End Adjustments

By editor on November 30, 2007 1:33 PM | Permalink | Comments (0) | TrackBacks (0)

Coffee prices remained confined to a 150 point range on what amounted to an inside day Thursday. Traders processed the meaning of the previous two days, Tuesday reversal and Wednesday sharp gain. I expect funds to be supportive if not encouraged to add to their long positions on Friday... And yes, there is a part of me that is waiting for the other shoe to drop.

I'm bullish on coffee prices, and expect further gains. I think longs should content to buy dips and yet be willing to risk a pullback to 123.70 in March (the low for the week). My objective is likely to be 140. However, let me also ay that it could reach a higher level. As long as the producers do not become aggressive in selling short, instead preferring to use puts I will remain friendly.

Producers should consider establishing bear fences.

Basis March Support: 127.65, 125.50, 123.75
Resistance: 129.80-130.50, 130.65-131, 133

Jurgens Bauer
trading floor: (212) 748-3898
cell: (973) 652-4694
coffeecomments@gmail.com