Today’s Yield from the Coffee Field—December ends at a high for the day

September 17, 2014

CEO of Excelso Coffee, Ed Field, reveals all the factors that go into each perfect cup of Field Coffee and Tea.

Today we had one of the smallest trading ranges of the past several months. December closed down 0.40, with a trading range of only 335 points. For most of the day, the market tried to break through 183.50, but met some solid resistance. It was not until the last 15 minutes that December zoomed to the high of the day of 186.45 at 1:29 p.m. The settlement was 184.5, 195 points off the high. So not too much happened today in the coffee market.

Read the Sept. 11, 2014 Thomson Reuters article, “Brazil sees 2015 coffee crop of 48.83 million bags.”

Today’s Yield from the Coffee Field—Predictions about low yield skyrocket prices

September 16, 2014

CEO of Excelso Coffee, Ed Field, reveals all the factors that go into each perfect cup of Field Coffee and Tea.

Today the December coffee contract opened down and tried to break through $1.81, where it had found support in three out of the past four days. At about 9:30 a.m., about three quarters of an hour before the attached article was released, the market moved quickly upwards. It climbed 690 points in 75 minutes, up to 187.95, probably hitting several buy stops on the way up. (Dare we say insider information.) Then traders started to digest the report and determined maybe the situation is not as bad as anticipated. December closed up 305 points at 185.25. Maybe tomorrow we will try to break through 1.81 again.

This Sept. 16, 2014 report released on the Dow Jones Newswire about the gain by arabica-coffee futures after predictions about the low yield in Brazil. “Brazil’s worst drought in decades raised worries about the size and quality of production this year, sending prices to a more than two-year high.”

Read the “DJ Arabica-Coffee Future Gain After Brazilian Forecast” article from the Dow Jones Newswire.

Today’s Yield from the Coffee Field—What is driving the market down?

September 10, 2014

CEO of Excelso Coffee, Ed Field, reveals all the factors that go into each perfect cup of Field Coffee and Tea.

Today was a bit exciting. (Allow me a little humor.) December closed down 11.35 points at $1.8125. It looks like December traded a few hundred lots in each five-minute period throughout the day, but from 1:20 p.m. to 1:25 p.m., five minutes before the close, December traded 2,146 lots, which sent December down 280 points and set a low for the day.

I am sure the December hit several sell stops in that slide. So, what is driving the market down? Clearly, some of the push down is from people who think the coffee supply this year and next year will be satisfactory to meet the needs of the market place. But also the strength of the dollar in relation to the Brazilian Real and the Colombian Peso affect the coffee market, because the coffee is traded in dollars. After the big drop today and the slide this month, we could see a correction tomorrow.