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La Nina Could Impact Coffee Prices


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Coffee Futures--- Coffee futures in the December contract settled last Friday in New York at 125.25 while currently trading at 125.50 up slightly for the trading week holding major support at the 123 level as I'm itching for a bullish position in this market as I think the commodities are starting to bottom out despite the fact that the U.S dollar continues to hit multi-month highs but is having little impact on prices at this time.

The weather phenomenon known as La Nia is starting to occur & could have a dramatic impact on the country of Brazil as there are certain pockets of coffee growing regions that need rain at the present time, however its very early to say that there is any type of drought like what developed in 2014 when coffee prices exploded to start the new year due to lack of rain.

A double bottom may have occurred on the daily chart as prices are unable to break the 123 level in my opinion despite the fact that prices are still trading right at their 20 day, but below their 100 day moving average as the chart structure is improving, but it is still poor at the present time as it will take more time before I enter into a bullish position as the risk/reward is not in your favor.

If you are bullish coffee and think prices have bottomed out place the stop loss at the contract low of 119 risking around 700 points or $3,000 per contract plus slippage & commission as coffee is the largest contract in the world with huge risk and huge potential as well.TREND: MIXEDCHART STRUCTURE: POOR---IMPROVING

If you are looking to contact Michael Seery (CTACOMMODITY TRADING ADVISOR) at 1-312-224-8140 I will be more than happy to help you with your trading or visit www.seeryfutures.com

Skype Address: mseery TWITTER---@seeryfutures

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Email: mseery@seeryfutures.com

If youre looking to open a Trading Account click on this link www.admis.com

There is a substantial risk of loss in futures and futures options. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor.



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About the author


Michael is the sole owner of SEERYFUTURES.COM which is a commodity futures and options consulting, advisory, and educational firm.

Michael frequently appears on multiple business networks including Bloomberg News, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He also writes market commentary for several commodity websites and is interviewed for commodity comments by the Wall Street Journal. He is also a guest on First Business, which is a national and internationally syndicated business show.
 
Michael started his career in 1990 at the Chicago Board of Trade as a runner. He soon worked his way up to becoming a Series 3 broker. He works with seasoned traders as well as novice beginners educating them on trading the futures markets as well as using simple and complex option strategies. Michael covers all markets including grains, metals, energies, and all other futures markets that are traded.
 
To Michael the biggest lesson any trader needs to learn is risk management. Michael believes this is the most important factor in trading. He also works with traders to help them determine the proper risk for their trading style. Michael has spent a lot of time educating his clients to help them understand trading strategies and trading techniques while enjoying spending quality time with customers going over the markets or just talking general trading philosophies.

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