Softs

Fundamentals have March Coffee Consolidating

Posted 01/04/2018 11:28AM CTAdam Tuiaana

The intermediate trend in coffee has been up, likely supported by a weak US dollar, strong Brazilian Real, and a strong crude market. Spotty rains throughout Vietnam, weighed against solid production numbers from Columbia, should have March coffee prices consolidating in a game of tug of war for a while. The 132 – 125 range is no stranger to coffee prices, as they remained in this range from October through December of last year. I would expect to see quite a bit more consolidation but closely monitor the upside 132 level for any potential breakout, as coffee prices need very little fresh fundamental news to revisit the highs from last year.

Coffee Mar ’18 Daily Chart

coffee_mar18_daily_chart

Adam Tuiaana

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.