Tuesday, June 12, 2007

Robusta Coffee Declines in London on Signs Earlier Rally Was Overdone

(Bloomberg) -- Robusta coffee futures fell in
London on speculation a rally that took the beans to the highest
in more than eight years was overdone.

Robusta's 14-day relative strength index, used by traders
to measure the momentum of price movements, was at 77.6 earlier
today and at 80.5 yesterday. A reading higher than 70 typically
signals prices will drop. Coffee futures traded at $1,918 a
metric ton in London earlier today, the highest since Dec. 8,
1998, on speculation supply may fall short of global demand.


Read more at Bloomberg Commodities News

No comments: