December Coffee Violates Support

October 24, 2017 10:07AM CDT

December coffee has now violated a major support area twice in the last two weeks. The low of 12430 from October 5 should have been enough to support December coffee, but this recent selloff says otherwise. Likely, it’s the continued wet weather in Brazil that has kept many bulls from entering the market, or short sellers from covering. Coffee prices want to move higher, but the simple lack of any news that would otherwise push prices higher is currently winning this battle. In addition, the continued positive price action from the US dollar, which has been in place since early September, will also keep coffee prices in check. For now, the aforementioned 12430 level should pose major resistance for coffee prices.

Look for December coffee prices to continue their downward spiral to at least the 120 level, with the 11910 low from June 22 acting as strong support. 


Dec '17 Coffee Daily Chart

Dec '17 Coffee Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.