FONDI IN ACQUISTO
As of this post coffee prices are higher by 4.44% with prices approaching previous resistance just below the 50 day MA (light blue line) that was challenged last week. Prices appear to be on the rise as money managers bought the dip this week when prices were trading near three weeks lows.
I anticipate funds piling into coffee longs next week buying upwards of 10,000 contracts as they re-balance their positions at the start of this new year. That addition would raise open interest by almost 8%. Producing countries will likely cap this market from raging higher but I do think prices could gain an additional 5-10 cents from current trade especially if short covering plays out.
1/3/14 Coffee Getting support from the Funds