After spending five days trying to get above 1.22 and close above 1.21 the bears took over and pushed December coffee down 315 points to close at 1.1775.
The weather report for the Brazil coffee growing areas calls for light to moderate rain through Tuesday and above normal rain for the next two weeks. Maybe our drought problems are truly easing.
Next week we will probably see some volatility. The non-commercial traders who have 40% more short positions than long will begin to move their positions from December to March 2016. This action will mean that the shorts will be buying December and selling March and the traders will be trying to take advantage of the spread between the two months. On the other hand there are a lot of produces who have not fixed their position for December and will have to fix their position by selling December.