Morning Comments for Oct 1st (by Alonso Thomas)

    Good Morning!! Corrective breaks are still seen as buying opportunities as there are still many factors which could shrink the size of the 2015 Brazil crop and there is not much hope of an increase in that production. December coffee saw solid gains yesterday and has now posted an increase of nearly 12% in just 7 trading sessions, leaving prices in a short term overbought condition, but at the highest level since September 8th. Coffee is still looking at supportive fundamentals going into 2015, and is one of the few commodity markets where global production is expected to come in below global consumption. In addition, before we evn have much of the grasp of the ultimate size of Brazilian 2015-2016 coffee production as the crop has not even flowered, and still the trade is mostly convinced that the upcoming crop will come in smaller. Buying support for December coffee comes in at the 189.25 level, with resistances being broken this morning, the market next target will be the previous high of 209.95.