This morning May coffee is trading at 1.2110, down 170 points, at its low for the day and the lowest in past four weeks. During this time the market has climbed as high as 1.3640. Today it is crossing the 40 and 60 day moving averages which have nearly flat lined this year.
The Market movement to the mid-1.30s may have been an over reach. Since last September the Dollar has strengthened and weakened and the Brazilian Real has done just the opposite. Today they are trading in the same range as last September and so is the coffee market.
On the Robusta front, last week, traders reduced their short positions to the lowest point in four months.
It looks the market is building a base in the 1.2250 + or – 1,000 points.