All last week the May coffee contract was somewhat quiet based on historical movements such as the Average Trading Range which was less than three cents as compared to nearly five cents at times last year. However, this week is a little different. On Monday the range was over 4 and today the range is well over 3 cents. On Monday the market went up 4.05 cents. Then down 1.35 cents yesterday. Today May is currently down 345 points at 1.1580. I know of no significant news that drove the market up on Monday and drove it down yesterday. Maybe just the switching from March to May contract. What is interesting is that today on the opening May gapped down 55 points and then continued to fall.
Usually the Robusta market follows the Arabica, but last week and this week it appears that the reverse is happening. Except for Monday when the most active month, May, was up 1 cent at 1418, the market was down four out of the last five days. Today London May is down 28 at 1370, the lowest level in over two years.
Arabicas are also at their lowest level in two years. The low of 1.1335 back on January 20th is the lowest for the contract. There is good support below 1.15.