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Monday, October 8, 2007

Coffee market action Oct-8

NY Arabica Coffee (December) future touched an intraday high of 139.9 and settle at 138.75.
The market opened sharply higher and got close to the contract high of 141 but closed in the session's mid-range.


San Paulo Arabica Coffee (December) future touched an intraday high of 169.7 getting very close to the contract high of 170 but closed in the session's mid-range around 168.


Traders continue to watch weather forecasts in Brazil coffee-growing regions: the market is long and near to its contract highs and 10 years highs, the next sessions wil likely see increasing volatility: the market could break the next resistances and set new contract highs as well as could be caught by surprise and sell off if rain arrives in Brazil and forces spec longs to reduce their long holdings (Spec long positions are close to historical highs accordingly to the latest COT report released last Friday).
Readers of Value Area Trading Newsletter will receive soon by email a market and strategy update on December Coffee Futures.

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