Good morning and Happy Wednesday,
I think it’s fair to say few could have expected yesterday’s price action, a violent downturn was observed across the board in Commodities, and Coffee felt the brunt of the pain – dropping 4 cents in 10 seconds. A mighty recovery followed though, and we closed the session relatively unscathed with a settlement of 130.45 (-0.30) in the March contract. The chart below (overlaid commodity basket) shows the extent of the damage that hit in such a short time frame). Gold was the only contract that went the other way whilst everything else was getting smacked.