JUN 13–SpillingTheBeans constantly monitors comments and news from across the world of coffee, from producers in origin to the highest level of market insight. The following comment was published in the online investment forum Insidefutures on Monday in the wake of the early frost reports from the coffee lands in Brazil. It is written by Michael Seery, the owner of SEERYFUTURES.COM which is a commodity futures and options consulting, advisory, and educational firm. Seery is a frequent commentator on trends in the futures market for coffee and other commodities for Bloomberg News, Fox Business, CNBC Worldwide, CNN Business and Bloomberg TV. We believe this is a great comment!
By Michael Seery of Seery Futures
JUNE 13 (Insidefutures.com)–Coffee futures in the July contract are trading lower by 75 points currently at 136.20 a pound as I have been recommending a bullish position from the 123 level and if you took that trade continue to place your stop loss under the 10 day low which stands at 120.80 as the risk on this trade is extremely high at the present time.
The chart structure will start to improve on a daily basis later in the week therefore lowering monetary risk as coffee prices have become extremely volatile and will continue to remain so throughout the summer months in my opinion, however if you have missed this trade move on and look at other trades as the risk/reward is not in your favor.
Coffee prices are trading above their 20 and 100 day moving average telling you that short-term trend is higher as cold-weather in certain sections of key coffee growing regions in the country of Brazil which has sparked this rally over the last week as coffee prices are right at a 10 month high. At the current time I’m also recommending a bullish position in sugar and I’m very close to executing a bullish position in the cotton market as the soft commodities continue to move higher so remain bullish and make sure to place the proper stop loss.
See the full comment and additional details here; http://www.insidefutures.com/article/1734516/I%20Am%20Bullish%20The%20Coffee%20Market.html-0-