Today, September dropped another 225 points to close at 1.2515. This drop means that September has gone down five out of six of the last trading days and the close is the lowest since December 2013. Included in this decline was the largest drop since May 21.
I have attached a coffee report, although it is dated July 1, it does explain some of the reasons for the decline. I have also been hearing that there are/were a lot of sell stops between 1.30 and 1.25 which have accentuated the decline.
Back in Nov/Dec 2013 there was September bottomed in this area. Therefore we could see some good support in the 1.25 area.
If we break through 1.25, we could see further significant declines; however, maybe not until the threat of frost in Brazil is past. The forecast is for normal to above normal temperatures in southern Brazil for the next 8-14 days.