Third Wave Thrust On the Way in Coffee?

Coffee prices just surged 38% in six weeks of trading, from mid-December 2005 to late January 2006. To put the move in perspective, that's nearly the size of the range that bound java prices for all of 2001, 2002 and 2003. And while it's only a third as large as the rally that more than doubled the market value for coffee around this time last year, the latest move has covered its ground in less than a fifth of the time.

Hype and hindsight aside, such numbers alone mean little for future price action. Yet the wave pattern that these fluctuations have traced out does have clear implications for what's next in coffee -- yet another high-volatility thrust that could easily match the most recent move in terms of both size and speed.

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