"Technically the market's just been terrible. I also heard of some selling happening in Brazil," said Hector Galvan, senior market strategist for RJO Futures in Chicago. "It's been in a sold downtrend since October 24 and it hasn't had the ability to recover." Robusta coffee futures on Liffe joined the retreat, with September down $27, or 1.3 percent, at $2,135 per tonne. Robusta bean exports in May from Indonesia's main growing area in Sumatra slumped 54 percent to 9,355.3 tonnes from a year earlier, government data showed. U.S. cocoa futures also fell, with ICE July down $20 at $2,063 a tonne, the weakest settlement for the spot contract since Jan. 6. The contract sank 2.7 percent earlier to $2,026. "Cocoa broke some good support here today on the idea of the terrible outcome of the employment figure that came out this morning," Galvan said, referring to breaking below $2,050. U.S. job growth braked sharply in May and the unemployment rate rose, putting pressure on the Federal Reserve to ease monetary policy further to shore up a sputtering recovery.
To read the full article with Hector's comments, please go to Reuters.com
Series 3 Licensed
Senior Commodities Broker
After earning a bachelor's degree from the University of Illinois at Urbana-Champaign, Hector was encouraged by a relative at the Chicago Board of Trade to get involved in futures. Prior to RJO Futures, he was a broker at Lind-Waldock from 2002-2004. He is experienced in short-, medium- and long-term chart analysis, and uses his knowledge in moving averages, oscillators, market sentiments, money management, and pivot profits to assist clients. His advisory background includes Hightower, Helms, G.... Read More