What a day it has been!
July coffee closed up 745 points at 1.3965, only 20 points off the high. The market is up 1810 points in 6 days.
What is going on!
First, on the currency front, the dollar is weakening and the Brazilian Real is gaining strength.
This situation is just the opposite of what happened in 2015 when coffee dropped from over $2.00 to its current price level, but the market is certainly not in a position to now rise to the $2.00 level.
Second, just the opposite of one of the reasons for the market rise in 2014, there is now too much rainfall in Brazil which is effecting the harvest of the current crop.
After this big run up the market is due for a correction. This level is the highest that the market has closed since October 2015