Today was another correction day. We have now had three big (over 400 points) correction days in the last six days. After a big up day on the eleventh, we have seen December go down 510 points, up 535 points, and today down 425 points to close at the lowest level since the seventh, 1.3480. The reason for the dramatic swings is that traders and producers can not figure out if currency valuations or Brazil’s current crop is more important.
The attached article from Dow Jones highlights two new players in the currency game, Colombia and Vietnam, whose currency is also loosing value, just the Brazilian Real, against the US Dollar.
I just talked with someone whose family grows coffee in Brazil. His comment is that the crop is expected to be 44MM bags which is the lowest estimate I have heard. I am sure that the bulls and the bears will continue to battle it out for another month or two when the final numbers are in for this year’s crop and the flowering begins again in Brazil.
The second article is about the internet and domain suffixes. Coffee is now available. Maybe I should change my web site to www.fieldcoffee.coffee?