After nine days straight up the December coffee contract made a spinning top (shows market indecision) on Thursday and then went down 375 points on Friday to close at 1.5115.
A 375 point move down after a nine day rise of over 1200 points is not unusual. What was unusual is the opening this morning, a gap down of 255 points on the opening at 4:15 with 1149 lots being traded. Currently September is up slightly to 1.4950.
The Dollar is fairly steady, but the Brazilian Real is showing some weakening which could be part of the reason for the December fall. Also, we are nearing the end of the possible frost period for Brazil. On the other hand Brazil does need some rain to help with flowering. As of now the weather reports are suggesting below normal or normal rainfall. Not good!
I hope that everyone has a great Monday and week!!