Coffee futures in New York climbed higher during the week ended February 16, setting fresh five-year highs as commodity fund buying supported the market.
"Coffee is still a bull market," said Judy Ganes-Chase of J. Ganes Consulting. She expected to see more price increases in the future.
Underpinning the market are expectations for a 5 million to 7 million bag shortage this season as the Brazilian crop will be considerably smaller, said sources. Reductions to Central American and Vietnamese crops are also seen as supportive to prices.
While the overall outlook remains bearish on coffee nearby technical selling might weigh on the market as the commodity funds could come in to liquidate some of their sizeable long positions. Producer selling is also starting to pick up as prices improve.
"Coffee is still a bull market," said Judy Ganes-Chase of J. Ganes Consulting. She expected to see more price increases in the future.
Underpinning the market are expectations for a 5 million to 7 million bag shortage this season as the Brazilian crop will be considerably smaller, said sources. Reductions to Central American and Vietnamese crops are also seen as supportive to prices.
While the overall outlook remains bearish on coffee nearby technical selling might weigh on the market as the commodity funds could come in to liquidate some of their sizeable long positions. Producer selling is also starting to pick up as prices improve.
