David Burrows iPATH DJ-UBS Coffee JO-N BUY Oct 17, 2016

Soft commodities have taken a real hit. Chart shows a long downtrend from 2011, followed by a breakout in early 2014. All of the soft stuff went from about $38 down to the low $20’s, but coffee didn’t. Because of this, he would think it goes higher.

Looking at the longer-term chart of coffee, it made a turn higher in about March, and had a pretty good lift from $17 to about $26. It has now pulled back into support at about $21. In general, the commodities are improving. We are seen strength in a whole bunch of different groups. This looks okay here.

Doesn’t have a real good opinion on where coffee is going from here. We are always going to be drinking coffee. Demand is strong. If the price of this keeps going down, there must be a decent supply of coffee out there.