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COMMODITY INSIGHT
152 Ennis Lake Road, Ennis Montana
(December 3, 1997) COFFEE: It is not unusual for the tropical commodities to be a leading indicator for the other commodities such as grains and livestock. Often times the tropical markets will rise smartly and a few days later grains will jump as well.
In early November, coffee prices fell to a one-year low. This week, coffee prices hit a three-month high with March futures up 8% in value in the first two days of the week. In addition cocoa prices (which hit a 15-week low on Monday) have rallied back to where they are now pushing up against a two-week high.
Needless to say, such a rise in coffee and cocoa prices does not necessarily mean that other commodity markets must rise as well. But often times, the tropical markets lead the way for other commodity markets.
Jerry F. Welch
COMMODITY INSIGHT |
BARNES BROKERAGE CO., INC. |
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