Coffee Traders Look At Crop, Discount Cartel
Coffee
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PowerRating) is selling off after
yesterday’s Association of Coffee Producing Countries (ACPC) meeting in London
as the market shifts its focus from the possible “retention” of coffee
from the world market due to good growing conditions and a potentially bumper crop
in the largest producing country, Brazil. Coffee is off 4% or 3.25 to 66.80.
T-bonds
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PowerRating) and
10-year notes
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PowerRating)Â have had a raucous ride this morning,
initially tanking on Greenspan’s comments supporting a tax cut. Lower tax rates
imply that the Fed will not have to be as aggressive in cutting interest rates
later in the year because, like rate cuts, tax cuts have a stimulative, although
lagging effect on the economy. But bonds and federal funds futures are rallying
back and are trading just above the trigger of an intraday (5-min.) 1-2-3-4
Pullback From Highs Setup.
Cocoa
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PowerRating), from the Momentum-5
List, is continuing to set up in a bullish way, showing higher lows and
persistent upside pressure despite a recent parabolic run. Cocoa lapped open and
has come back to fill the opening lap.