Fuente: blog.stocktradersalmanac.com
Coffee typically posts a seasonal high in May. This creates coffee’s most powerful seasonal play under normal weather conditions, which means a lack of frost and average rainfall in the Southern Hemisphere growing regions of Columbia and Brazil. Traders can look to sell short coffee on or about May 22 and hold through August 8 (shaded yellow in chart below). This trade has worked 29 out of last 40 years for a 72.5% success rate.
Coffee prices surged this year, more than doubling for its November lows primarily because of drought conditions in the major producing areas of Brazil. Some of this concern was likely overdone, setting this short coffee trade up nicely this year. After peaking in late April, coffee has fallen for two straight weeks and is on course for a third this week.
Coffee prices surged this year, more than doubling for its November lows primarily because of drought conditions in the major producing areas of Brazil. Some of this concern was likely overdone, setting this short coffee trade up nicely this year. After peaking in late April, coffee has fallen for two straight weeks and is on course for a third this week.
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