Commodity ETF Alert Special Trade Update: COFFEE

 

Special Trade Update:  Coffee

Folks, we’re getting some massive gains from our coffee trade.  As you know, we initiated a long position in the iPath Pure Beta Coffee ETN (CAFE) in early January.  We based our trade on quickly changing supply estimates out of the world’s largest coffee producer- Brazil.

As of this morning, we’re sitting on a whopping 31% gain in CAFE!

What’s more, the coffee ETF is very close to hitting the $21.00 price target I mentioned in the initial trade alert.

But here’s the deal…

The drought conditions in Brazil are getting worse. Extended dryness in key growing regions is threatening to reduce the country’s coffee crop by an estimated 30% or more.

As a result, let’s raise the price target for CAFÉ to $23.

It will likely be a volatile ride, but given the fear overtaking the coffee market, this higher price target is attainable.

Until Next Time,

Justin Bennett

 

Category: Commodity Trading