Fears of producer defaults on contracts for this year’s crop helped to push the coffee market 8% higher on the opening, as losses could be significant and tree recovery may take up to years to recover. Loss estimates are very speculative at this point. Coffee’s upsurge continues to gain momentum as prices have risen over 23% in value over the past 3 trading sessions. While the market appears to be heading for even higher price levels, coffee is already well into technically overbought levels and is vulnerable to profit taking. Indications that this week’s frost in Brazil regions led to significant damage to coffee trees has fueled coffees move higher this week. The gap up on the chart is a bullish indicator. First support hits at 185.90 and below there 175.15. Resistance comes in at 201.40 and then up at 206.00.