Good Day Folks!
On Friday the September coffee contract closed sharply down at 1.4190, down 495 points. It is now over 1,000 points off its high of 1.5480 reached on July 15th.
Over the past few weeks the coffee market has been influenced in a bullish way by two factors. First, coffee prices can be quite volatile during the Brazilian winter as the threat of cold weather pushes the market up and then as the threat passes without incident the market falls off. There have been some minor threats of cold weather recently which have passed with no damage to the trees. Second, there has been a truckers strike in Colombia which has hindered the transportation of coffee to the ports. On Friday the threat of frost in Brazil passed and the strike appears to be settled.
Please see the attached article for further information.