May Coffee Futures Continues Downward

March 15, 2018 8:36AM CDT

Extremely volatile and choppy sideways price action seems to be the ongoing story for May coffee prices. As is the case in many long term down trends, May coffee prices continue to have solid and steep corrections, as part of the downward continuation. Continued wet weather in Brazil is managing to put pressure on May prices this morning. On a side note, the addition of Larry Kudlow as Trump’s top economic advisor will likely promise solid efforts to continue US dollar strength, inversely (and ultimately) pushing other currencies and commodity prices lower.  From a technical perspective, ongoing violation of critical support areas (initially 120 and then 11850 shortly thereafter) have done nothing but convince already-bearish traders that a continued downtrend is underway. Although traders should expect steep corrections, the bears seem to be fully in control at this point.

On a different but related note, Happy 13th Birthday to my son Christian! Although decaf is all Daddy allows him to have right now, he is none-the-less a big coffee fan.

Coffee May '18 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.