Today was a day of correction. After rising seven out of the past nine days and after gapping up on the opening this morning and continuing to go up 200 points, at 9:15 the market said enough is enough and dropped 500 points in a half hour. With a short pause at 11:00 the market continued to drop on pretty good volume. The July contract closed down 460 points at 1.2410.
The Dollar has retracted from its high. It is now about where it was in August of last year. The Brazilian Real has moved off of its lows and it is also in the same area that it was last August. The July coffee contract is about five cents lower than where it was in August of last year.
So based on currency trading without consideration of weather or Brazilian politics in the 1.25 to 1.30 range.
However, and in spite of the down market today, the attached Dow Jones report, which was issued before the market dropped today, is rather bullish.