Coffee Futures Plummet on Favorable Weather

Coffee futures plummeted the most in three weeks on the view favorable growing conditions in Brazil will continue – with no frost damage for the coffee crop.  Coffee was down 430 points from yesterday’s close.

A respected meteorologist forecasted the coffee-growing regions of Sao Paulo & Parana to be mostly dry, and for temperatures to remain above freezing in Brazil for at least the next two weeks.  The South American winter in Brazil is in effect when summer is “happening” in North America.

It is also reported 44% of the coffee harvest has been completed as of last week and reportedly well ahead compared to the coffee harvest last year.  With the recent drop in Brazil’s currency, exports seem to be looking good especially with overall coffee prices down 34% since last year.  
            
Kevin Craney, Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, had this to say regarding the current coffee futures situation, South American weather doesn’t appear to pose any immediate threat, and this will continue to put pressure on (coffee futures) prices in the interim.”

Coffee futures trend remains down with no bottom yet in sight.  Stay short – for those of you whom are – and let’s keep the coffee futures buy stops tight.

Share

Comments are closed.

Free Report
Receive Actual Trading Statements, & a Special Insider Report: 5 Key Trading Foundation Points

Futures Trading Report
 

Please note that it
takes a minimum
of $10,000 to effectively
trade these portfolios!
 
*First Name:
*Last Name:
*E-mail:
*Day Phone with
Area Code:

Categories

Follow Us on Twitter