Tags: rick | pendergraft | coffee | us | economy | futures | prices

Coffee Continues to Grind Higher

By    |   Tuesday, 26 April 2011 08:02 AM EDT

During the past year, coffee futures have jumped more than 120 percent from the $130 level to above $290.

Granted, a number of commodities have been on the rise over the past 12 months, but few have jumped like coffee has.

The rise in prices isn’t what caught my eye though. The commitment of traders report for coffee shows that the price has continued to climb even as large speculators have increased and decreased their holdings.

No matter what they did, the price has continued to climb.

Last summer, the group had built the second biggest long position of the last five years with 48,000 contracts being held long. That position dropped almost in half recently, but the price has continued to climb.

Normally what we see with futures is that when a large position is built by large speculators, the price rises as the net position rises. When the large speculators start shedding contracts, the price dips. This hasn't been the case with coffee.

What all of this suggests is that the bullish run for coffee is far from over.

© 2025 Newsmax Finance. All rights reserved.


Pendergraft
During the past year, coffee futures have jumped more than 120 percent from the $130 level to above $290. Granted, a number of commodities have been on the rise over the past 12 months, but few have jumped like coffee has. The rise in prices isn t what caught my eye...
rick,pendergraft,coffee,us,economy,futures,prices,
181
2011-02-26
Tuesday, 26 April 2011 08:02 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved