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Commentary

Softs

Soft Market: Here Are My Coffee Thoughts

Commentary — Michael Seery Date — September 30, 2016

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—Coffee futures chart

Coffee Futures - Coffee futures in the December contract settled last Friday in New York at 151.40 a pound while currently trading at 151.60 basically unchanged for the trading week as I've been recommending a bullish position around the 156 level and if you took that trade continue to place your stop loss under the 10 day low at 149 on a closing basis only as prices did trade below that level earlier in the trading session.

Coffee prices are trading at their 20 day but still above their 100 day moving average telling you that the short-term trend is higher as prices have been consolidating over the last week looking for some fresh fundamental news to dictate short-term price action.

As I've talked about in previous blogs this trade should only have been taken with a large trading account as the original risk was around $3,600 per contract plus slippage and commission as this was a high risk trade as coffee is the largest commodity contract around with huge price swings and massive risk.

At the present time this is my only trade recommendation as there are very few trends in the commodity world at this time, but that will change as I think it still might take some time possibly even getting through the November U.S election for the trends to come back with a vengeance.

TREND: HIGHER-- STRUCTURE: EXCELLENT

—Advertisement

Full service commodity broker specializing in grain and livestock trading for over 20 years

—Bull Trend

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Explore More Commentaries
E-Mini S&P 500: Employment on tap

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