May Coffee Violates Support

February 28, 2018 9:08AM CST

Although we have seen some strength over the past week in May coffee prices, the US dollar continues to show strength, adding ongoing pressure to coffee prices. It was reported by The Hightower Group that “Vietnam’s coffee exports for the January- February period were expected to come in near 347,000 tonnes” but it looks like they were short of this number. This has allowed coffee prices to hold some support at the 120 level. However, we cannot deny the fact coffee prices did manage to violate the critical low of 12051 from December 12 of last year. Although some short covering and consolidation may take place in the near term, with the inverse pressure continuing from a strong US dollar and large upcoming crop in Brazil, I would expect another retest of the 118 area in the next week or so.

Coffee May '18 Daily Chart


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

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.