Aug

14

The trading week began with agents searching for liquidity above the previous weeks high, unable to create a bait ball. The effect was that agents spent the balance of the Monday session and most of Tuesday’s puking longs. Late in Tuesday’s session though began the signal that something was afoot — commercial users started to cancel back month resting orders and aggressively pay up. On the Wednesday session the market opens higher and vacuums up. The market moves up so fast that not many agents could get long. Thursday finds the trend followers heading for the same exit but this time the decomposers are waiting; bid it up then give it to them.That has been the price action in coffee this week. The explanatory narrative will be Hurricane Chris heading to New Orleans coffee warehouses, and supply problems in Vietnam.


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