Monday’s Technical Analysis: US Coffee
US Coffee CFD closed higher Friday.
The high range close set the stage for a steady to higher open Monday.
Stochastics and the RSI are turning Neutral to Bullish indicating that sideways to higher prices are possible near term.
Closes above the 20-Day MA crossing are needed to confirm that a low is in.
If US Coffee extends the decline off of its January highs, the weekly support crossing is the next Southside target.
Coffee is the 2nd most commonly traded commodity in the world (measured by monetary volume), is 2nd only to Crude Oil as a source of foreign exchange to developing countries, according to the International Coffee Organization.
While production and consumption of many commodities tend to rise and fall based on price, shifts in Coffee supply and demand are not so prone to price changes as people look for their morning cup of Coffee at whatever the price is.
An important distinction for Coffee futures is that 2 different types of coffee are traded on the world’s exchanges.
US Coffee futures and options are traded in New York on the Intercontinental Exchange (ICE, formerly the New York Board of Trade).
- The size of the US Coffee “KC” futures contract is 37,500 lbs
- Coffee commodity trading is now done electronically.
- Coffee futures prices are quoted in cents per pound, and the minimum price fluctuation is 5/100 cent/pound, equivalent to $18.75 per contract.
- A 1-cent change in price equals $375.
- The coffee futures contract months are March, May, July, September and December.
- The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse to one of several ports in the United States and Europe.
International Coffee Market
London Coffee futures are traded on the Euronext.liffe.
- The size of this Coffee futures contract is 10 metric tons.
- Coffee futures prices are quoted in USD’s per metric ton with the minimum price movement $1 per ton or $10 for the contract.
- Contract delivery months are January, March, May, July, September and November with 10 delivery months available for trading.
Other international exchanges that trade coffee futures include the Singapore Commodity Exchange (Robusta), the Commodities & Futures Exchange (BM&F) in Brazil (Arabica) and the Tokyo Grain Exchange (Arabica and Robusta)
Have a terrific week.
Latest posts by Paul Ebeling (see all)
- Global Crude Oil Projects Have Been Slashed By $100-B - May 25, 2015
- A Revolution: The Gamification Of Investing, Game On - May 25, 2015
- A Sustainable Rewrite For Frederick County, Maryland - May 24, 2015
- Public Pressure Grows On Gulf Countries Sovereign Wealth Funds - May 24, 2015
- Joe Biden’s Remarks Poisonous To US China Relations - May 24, 2015
Trade FX, Equities and Options with the World's Leading Platform Open an account here , call us at 305 4904 116, or email us to get started.
A Revolution: The Gamification Of Investing, Game On For the ... read more
LME Base Metals Finished Lower Friday The base metals prices ... read more
BorgWarner Trophy To Indy 500 Winner Juan Pablo Montoya $BWA ... read more