Coffee

[winston]

THE BEAR MARKET IN COFFEE IS ENDING

After plunging 50%-plus over the past three years, coffee prices have found a bottom.

Last summer, we noted that contrary to what most folks believe, commodity prices haven't climbed much over the past decade. In fact, the benchmark commodity index (the CRB) is currently at the same level as it was in 2004.

There's a good reason for this. When prices rise, the common response is a surge in production.

Coffee prices enjoyed a huge bull market a few years ago. As you can see from the chart below, coffee prices more than doubled. Higher prices encouraged farmers across the world to grow more. Last year saw record crops from the world's top two coffee producers – Brazil and Vietnam.

In November, coffee prices hit a seven-year low – just above $1 per pound. Over the past few months, prices are up more than 20%. It's a sign that the supply glut is starting to ease. Coffee prices look like they've finally found a bottom.

Source: Daily Wealth

[winston]

Coffee is the best-performing commodity in 2014 so far… up 26% since the start of the year.

[winston]

Coffee prices rocket 57% over the past month.

[winston]

Coffee prices hit a new high this week, up over 8%.

Coffee is up over 80% for the year, partially due to a hot and dry summer in Brazil, which accounts for one-third of annual coffee output.

[winston]

The "trade of the year"… coffee prices rocket 90% in the past three months.

[winston]

Coffee prices rocket 82% since the start of the year.

[winston]

Coffee is the best-performing commodity in 2014… up 59%.

[winston]

Coffee is the best-performing commodity this year… up 73% in 2014.

[behappyalways]

Bad for Singapore-listed Food Empire and Super Group

Coffee prices skyrocket after Brazil drought
http://buzz.money.cnn.com/2014/04/24/co ... d=HP_River

[winston]

A Second Shot at the "Trade of the Year" By Jeff Clark

Coffee looks ready to make another move higher.

In January, we said 2014 may be the year of the coffee trade. After falling 67% over the past three years, the chart of coffee turned bullish. There wasn't a lot of downside risk left, and there was plenty of upside potential. We said to look for a 60% rally in coffee prices in 2014 – which would be enough to declare 2014 a big year for coffee.

We got that gain in just two months. The price of coffee rallied more than 70% by early March.

Since we captured an entire year's worth of returns in just two months, we suggested taking profits on the coffee trade.

Since then, coffee has been steadily declining in price. Now there's another trade setting up…

Take a look at this chart of coffee…

Please Enable Images to See this

Coffee is on the verge of breaking out of a bullish falling-wedge pattern (the blue lines on the chart). This pattern forms as an asset makes lower lows and lower highs, and the distance between the lows and highs gets smaller. Most of the time, this pattern breaks out to the upside. In the case of coffee, an upside breakout could start a rally back up to $2 per pound. That's a 15% gain from current levels.

Also, the Moving Average Convergence Divergence (MACD) momentum indicator (at the bottom of the chart) is more oversold now than it has been at any other time during the past year. There's also positive divergence on the MACD histogram (the shaded area on the bottom graph). Both of these indicators point to the likelihood of a bounce from the current level.

We're not looking for a move as strong as we saw earlier this year. But the setup is developing for a quick 15% gain.

Traders looking to profit on a possible rising trend in coffee prices should consider the iPath Dow Jones-AIG Coffee Total Return Sub-Index ETN (JO). This exchange-traded note uses the futures market to track the performance of the price of coffee.


Source: www.growthstockwire.com