Today the September coffee contract closed down 90 points at 1.2505. Although not much, the contract has now closed down six days in a row. Today’s low is less than 100 higher than the all time contract low from July 7 of 1.2365. Open Brazilian Report.
September tried to go higher after touching the low, but the push could not be sustained. We are now threatening to break through the low. If that occurs, there could be many sell stops that could increase the rate of decent. To where?? Anybody’s guess!
With a continued strong dollar and weak Brazilian Real and a good current harvest, prices could be under pressure to continue the decent. As always the market could correct itself upwards tomorrow and then begin the decent again.