Futures Closing Bell – Bears get burned, as Coffee futures get hot!

Bears get burned, as Coffee futures get hot! Coffee futures traded at 6-week highs today, as commodity funds and speculators bid-up the market. Trading volume was light, as many traders have closed the books for the year. Only limited origin selling was noted, which helped further gains. Buy-stops were triggered above 104.00, with local traders the only sellers today. Option trading was active, with speculators buying call options according to floor sources. Strong resistance can be found between 108.75 and 109.00, with support at 103.00. March Coffee closed at 106.20, up 3.60.

BOJ’s worried about lack of JOBs: The Japanese Yen opened much lower and continued to fall versus the dollar after reports showed an unexpected decline in Japan’s household spending and an increase in the jobless rate. Japan’s households spent less in November as disposable income fell, and more people reported seeking work. Spending by households headed by a salaried worker fell 0.7 %, seasonally adjusted from October, the statistics bureau in Tokyo said today. Unemployment rose to 4.6 %, which was higher than analysts had estimated. Governor Toshihiko Fukui announced last week that there is a high probability that the Bank Of Japan will need to change its current policy because of continued growth. The BOJ has held interest rates near zero to combat falling consumer prices. Finance Minister Sadakazu Tanigaki said today that deflation continues to be our main concern, even with the recent rise in prices that has taken place over the past month. This is the first time consumer prices have risen in the past two years. The March Japanese Yen contract closed at 0.8612, down .0075 for the session. Scott Snyder XPRESSTRADE Analyst.

Warm weather squeezes OJ bulls: The energy markets were not the only ones affected by the mild weather across the eastern half of the country. Orange Juice futures plunged to month lows today, as speculators who were heavily long liquidated their positions. Prices gapped lower this morning, as traders looked at the most recent weather forecasts calling for normal to above normal temperatures for central and south Florida. Further selling was uncovered once the January futures broke below the 50-day moving average. Trading volume was heavy, as traders continued to roll out of their January positions before first notice day on January 3rd. January OJ closed at 119.80, down 4.35. Information on this page is derived from third parties and is deemed to be reliable. etvFUTURES accepts no responsibility for errors, omissions or inaccuracies in any of the material presented on this web site. Opinions expressed on this web site are those of the respective individuals and/or institutions and do not represent the opinions of etvFUTURES or its management.