Softs

Continued Bearish Picture for May Coffee

Posted 03/27/2018 1:57PM CTAdam Tuiaana

There is no real change from the past couple of weeks for coffee. The bears are still solidly in control, with a large Brazilian crop on the horizon, strong US dollar and favorable weather throughout many of Brazil’s growing areas. From a technical perspective, ongoing violation of critical support areas (most recently 11690) continue to paint an extremely bearish picture for traders. As it stands, I am very comfortable with short, long term positions using long put options that allow exposure and leverage, while managing risk effectively. Expect more of the same for the foreseeable future.

Coffee May ’18 Daily Chart

coffee_may18_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.