Coffee Storms
Coffee is extending gains for a fourth day as Brazilian weather-watchers
continue to call for freezing temperatures to hit key coffee growing regions in
the world’s largest producing nation. Coffee registered on the New 10-Day Highs
List Thursday, a precursor to the Momentum-5 List, and the September contract is
making good on an Off The Blocks Setup after gapping open. A Brazilian crop-forecasting group just released a crop estimate for the 2000-2001 season to
increase by 5% to 8% and that has caused only a slight pullback from what is now
a 20-day high in coffee.
Still consolidating within a developing head-and-shoulders
top formation, natural gas is trading 2% higher and making good on a
Turtle Soup Plus One Buy
setup.
T-bonds are breaking out above an extended base-at-highs,
taking their cue to rally from a report showing a higher number of jobless
claims and a repurchase by the Treasury of outstanding debt. Higher prices come
one day before the Producer Price Index report, implying some traders expect the
numbers to show little inflation.