From the DJ news wires:
On ICE Futures U.S., pit-traded Arabica coffee futures sank to 2 1/2-week lows as funds and small speculators liquidated and batches of sell stops were triggered during the retreat. Sellers were spurred by predictions from Brazilian meteorologist Somar and other forecasters that the nation’s producing areas – where it’s been too dry for spring blossoming – will get rain Thursday and Friday, followed by more showers next week. Pit December closed 9.25 cents lower at $1.3005 a pound.
When this shakeout is complete, I think we’ll have a nice buying opportunity. As painful as this is (and it is hurting me big – I’m down over 15% overall in the last 2 days!) – you have to think all the speculators have ditched their positions, giving us a nice base for the next leg up.
Remember, the fundamentals are still strong. And nobody really knows if this crop is going to be damaged or not – the rain may be too little, too late.