COFFEE

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GENERAL OVERVIEW OF COFFEE (KC) MARKET

ISSUE DATE: JUNE 2, 2006

Coffee is reacting to the IC3 cycle end and should trade into the end on June 5. Thereafter, the key line will be IC4 because price above IC4 means coffee will continue rising after likely making a call at target 1, eventually to reach IC1 and even HEC (out of picture but in the 119-120 range). On the other hand, if coffee fails to get above IC4 then we are likely to see a bottom made at target 2. A target 2 bottom would be a long term cycle bottom.