Friday’s Technical Analysis For: US Coffee (JO)
US Coffee (JO) CFD closed lower Thursday.
The mid-range close set the stage for a steady open Friday.
Stochastics and the RSI are becoming overbought but remain Neutral to Bullish indiscaitn that sideways to higher prices are possible near term.
If US Coffee extends this month’s rally, the Sept high crossing is the next Northside target.
Closes below the 20-Day MA crossing will confirm that a short term top has marked.
Coffee 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
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)
Stay tuned…
HeffX-LTN
Paul Ebeling
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