March Coffee Showing Strength | RJO Futures
Back on January 10 th of 2017, we witnessed March coffee break above the 14535 resistance area. Subsequent strength followed, reaching highs not seen since November. Since reaching close to the 15700 level, it appears March coffee is now going into a healthy-sized correction, with long liquidation. Throughout this last selloff, we’ve seen March coffee break below the corrective low of 14675, from January 18 th of this year. This violation could possibly suggest more corrective price action to follow.
Heavy rains are forecasted in key Arabica growing areas of Brazil, adding continued pressure to the March coffee futures contract, keeping bullish traders in profit-taking mode. This wet weather should help to offset and balance the current low supply of Robusta coffee in Brazil, and ultimately make for a stronger long term supply outlook.
Mar '17 Coffee Daily
Source: RJO Futures Pro
Adam Tuiaana
Senior Market Strategist
Adam grew up in Chicago and was always fascinated by the fast-paced action found in the futures market hub there. He began participating in the financial markets by trading stocks in 1997 and began his career as a trading consultant with RJO Futures in March of 2009. At RJO, he specializes in risk management and disciplined trading plans, and is focused on educating clients with one-on-one consulting and training. Adam believes the best approach to trading is to take a measured and objective approach and let the markets guide your decisions.
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