Is it time to buy coffee?

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Price cycles are bullish-coffee price cycles have tended to see a low point in the middle of the 8 year cycle and then see another big run back up higher in prices. The current DNA of time and price are perfect for a secondary price cycle bottom and surge back up. Also two long term trendlines reside near $1.50 further suggesting that the current retest of such lows likely will hold and launch the next bull market in coffee. The eight-year price cycle for coffee predicts another large run back up in coffee prices.

The 8-year price cycle for Coffee predicts another large run back up in coffee prices

Looking at the December 2012 futures price chart a likely higher low is developing that should breakout to the upside no later than October 2012. This would be consistent with typical seasonal price lows in the fall and a seasonal pick up in coffee demand.

Also, relative value levels remains very bullish and cheap. Despite the impressive bull market in coffee during the 2010/2011 timeframe, the relative price chart barely budged and fell way short of reaching the typical .70-1.00 relative value level. A true coffee bull market will go it alone. This strongly suggests that the bull market in coffee has a long way to go.

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