Guys , last call for possible short squeeze on robusta Nov/Jan here @ 2. We are close to expiration though ...
1240 GMT The gap between November and January Robusta coffee contracts has narrowed to just $3 per ton, prompting concern from one European trader that the market could be squeezed. The scenario follows on from a similar situation with the July contract where traders say a short squeeze, a market phenomenon where one player controls both futures contracts and physical coffee, occurred. The usual result of the tactic is to push up the cost of coffee and futures contracts in the front month above the next contract. In a typical market, contracts increase in subsequent months, providing a "carry" profit that allows traders to cover rent and other administrative costs of keeping coffee in warehouses. (Katherine.dunn@wsj.com)
Oh no man!!! That thing can go to 50 in an eye blink... I am long from -8...I posted it a few weeks ago.
Yeah, somebody( a big commodity house ) is trying a short SQUEEZE meaning pushing the market higher and force the short funds to cover before the expiration in a runaway market.
So looks like Coffee got slayed today on rain (or lack of) fears being reduced. http://www.agrimoney.com/news/talk-of-brazilian-rains-sends-coffee-prices-tumbling--8905.html It's at the 50% mark of the last rally now.