Happy New Year!!
I hope that everyone behaved themselves New Year’s Eve or at least had a good time that they remember!!!
Last week we saw the March coffee contract go up three days in a row for a total of 755 points to close the year at 1.2670 down $0.552 for the year. The general consensus is that activity was mostly profit taking by the shorts.
Yesterday was a down day and today March is down 90 points for a close at 1.2300. March is still trading in the range that I mentioned a few weeks ago of 1.21 +/- 600 points.
I have attached a weather report for a variety of coffee producing countries around the world. Depending upon their geographical location (above or below the Equator) the growing and harvesting seasons vary. Colombia which is on the Equator has two harvesting seasons. The closer one is to the Equator the more opportunity there is for a coffee tree to have flowers and green and red cherries on the tree which makes it difficult to harvest because you do not want to harm the flowers or green cherries while you are picking the ripe beans. For Brazil the report indicates that the rain in the next week will be wide spread, but erratic and light.
Rain fall may be bullish, but the strong dollar and weak Brazilian Real is encouraging producers to sell.
Let me wish all of you a very prosperous 2016!