Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Coffee is coffee and demand is demand. If the numbers come up short coffee, price should go up regardless of who owns the stocks. In fact, when a couple or three big trade houses own coffee, the sale can be more orderly and prices have been known to climb under this scenario. Not much is being said about the low Brazilian exports in July--the very high exports reported by the ICO on a global basis are old figures. To me these low exports which persist to this date are putting a big dent on consumer stocks, we just have not noticed it yet. I am very mindful of a market that might soon enter a range expansion mode higher breaking resistance areas above. I will not anticipate it or prepare for it, just watching for it for the time being.
Even if I sound bullish in the paragraph above, I must still report that demand is still sluggish, with very bad differentials. My guess under this is that high inventories are still being worked off. When will it end ? a few months ago I thought by end of July, now I am not so sure. I am very open about everything and flaky in my stance. Best thing to do is to trade my technicals for me.