Last week March 2014 coffee opened at $106.50, and after a rocket ride up on Tuesday closed the week at $115.25. What gave bulls the shot in the arm to do this? News last week was there could be a near-term squeeze in Robusta supply, which would increase demand for Arabica.
Today we see that concern dropping as Vietnam has once again started selling coffee that they held back while waiting for the price to rise. Keep in mind they are the world’s second largest coffee producer. So with today’s news on Robusta supplies, bulls look to be losing steam. If you did catch some of this ride up, make sure you adjust your stops.