Does anyone here know much about coffee prices, and how to play them. The frost in Brazil seem like it will sent the prices through the roof.
July 18, 2000
CLOSING N.Y. COFFEE: SEPTEMBER EXPLODES TO $1.2200
Coffee futures exploded higher since the opening, reaching a high of $1.2000
and early in the afternoon, September delivery reached the session high of
$1.2200, erasing some gains in profit taking by the close. December delivery
reached a session high of $1.2485 late in the session, also erasing some of
the gains by the close, but both closed with huge gains in wild action as is
usual in a weather-related market, traders said. "Severe frosts in Brazilian
coffee areas are in the market and participants think that September delivery
could easily reach $2.7800 by the end of the month and could even go higher to
test the lifetime highs of coffee prices in the New York market (CSCE), of
$3.3800, high reached 25 years ago today, on July 18, 1975, when a black frost
hit the Brazilian coffee growing areas," an analyst said. "Now, everybody is
buying September and December contracts as they see prices being very cheap
now and they could easily be duplicated by month's end so they are analyzing
how and when the strong rally caused by the black frost in 1975 started, and
reached the $3.3800 high," the analyst added. |
