WILL FLAT- PRICE COVERAGE DIMINISH MORE? The Yuan will be added to the IMF Special Drawing Rights basket on October 1st 2016 after the board of the entity approval today. It is an indication that further reforms on the Chinese currency policy will happen, with many economists foreseen more devaluations of the renminbi. For commodities […]
NON-COMMERCIALS, COMMERCIALS AND INDEXES Risky assets fell in the past five days on a continuation of dollar strength with the markets now betting there is a 90% chance of a December FED lift-off. Japan entering the 5th recession since 2008, oil sliding close to US$ 40.00 a barrel and the belief that the Euro might […]
BLAME THE DOLLAR AGAIN The US non-farm payroll data released on Friday beat all expectations with the creation of 271k posts during the month of October, taking the unemployment rate to 5%. Growth wage, smaller part-time workers and smaller under-unemployment figures have set the stage for the FOMC to increase interest rates on the December […]
RAINS HELP THE ARABICA BUT NOT THE ROBUSTA BEANS World stocks in October had the best monthly performance since 2011 led by 12.32% gains of the DAX, +9.75 of the Nikkei and the three major US indices that rose between 8% and 9%. Easing policy from the People’s Bank of China and signals from the […]
Weather all over again One more FED official stated that the interest rate increase until the year end is expected, mentioning also that it is not a commitment and dependable on the global economy – more of the same, make the lift-off still unknown. Many economists believe a 2015 hike is possible, but a good […]
Have we seen the lows? Janet Yellen (two weeks ago) tried to calm down the markets saying that she and most of the FOMC expect a liftoff in 2015, but the growth revision of the Chinese GDP and Friday’s US job number have made investors skeptical about a rate hike this year still. The change […]
After two weeks of relentless pressure coffee futures have started to find their footing trading higher three out of the last four sessions. As of this post futures are higher by greater than 2.25%. Let’s see if bulls can hold onto these gains? In just four sessions March has advanced a nickel off the seven […]
For the better part of three weeks coffee prices have largely been range bound consolidating just above their recent lows. The market is in the process of digesting a massive Brazilian crop and the outlook for a potential record crop again next year. Brazil is the 800 lb. gorilla in the coffee market and should […]
Drinking too much coffee can surely cause an upset stomach and having too large of a position and being on the wrong side of the market of late likely could end in the same result. In recent sessions it’s been like the Wild West with a range H/L of over 12 cents in 2 sessions […]
Coffee price are now off their May 2011 highs by 55% and just 26% above the lowest price we’ve seen in the past five years. Futures are trading just a dime or so above a key pivot point, at $125.00 (lower red line). Here’s how to add coffee to your portfolio. After consolidating in a […]
