Today, December closed up 355 points at 1.2430, the highest close since August 31st. Neither the Dollar, the Real, nor the weather appeared to have changed much from yesterday to today. And I have not seen any bullish crop reports.
So what happened? For six days the market has tried to go higher or tried to break through 1.2250. At 12:45 with about twice the normal volume December climbed to 1.23. During the next five minutes with about five times the normal volume December went up another 200 plus points to 1.2525. December then retreated to 1.23 before a close above 1.24. Is this the break out for which the bulls have been looking?
The attached article states that China will grow its consumption of coffee significantly over the next several years as consumer spending increases on “luxury” crops such as coffee.