Inside coffee’s jolt and crash

Market Pulse for July 23

Last week September 2013 Coffee (NYBOT:KCU13) opened at $119.30 and closed the week at $122.70. We saw a close high of $127.95 last week. On Monday, July 15, September coffee was the percentage performance leader rising 3.85% for the day. On Friday, July 19 coffee was once again the percentage performance leader, this time dropping 3.80%. Looking at the daily chart on page 3 you can see the huge move on Thursday July 18 that ended in a doji with the market closing where it opened.

This looks like a classic example of buy the rumor and sell the fact as Friday’s reports came out saying no frost was coming and even a Brazilian official came out and said the largest growing region in Brazil was not threatened by frost. You see what happened on Friday.

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