Morning Commentary for Oct.15th (by Alonso Thomas)

    Good Morning!! December coffee has traded inside the recent range of October 6th for the past 6 sessions and in the process has corrected some of the overbought conditions. Ideas that the Brazilian crop is still under stress until the rainy season begins in another week, and that the portion of the crop which may have flowered in September is still vulnerable to aborting flowers, have helped provide support for the market.  Prices were able to finish with a solid gain yesterday and climbed up to the highest closing price since February of 2012 as hot and dryer weather have also been an ongoing concern. London Robusta closed lower on the day and after some choppy two sided trading, speculators emerged to give it some support towards the end, but London is now trading higher on the heels of the New York rally yesterday.  Open interest is in a steady uptrend move, and the latest COT showed a steady buying trend from fund traders. While short term overbought conditions till remain, the market continues to attract buying interest as coffee could see a global production deficit for 2 straight seasons.  Buying support comes in at 217-218 now, with the nex upside target still near the 227-228.