Coffee Consolidating but May See Short CoveringPosted 02/11/2019 11:13AM CT |
May coffee prices are trading lower today but remain between the December/February consolidation area. The market finished lower 1.20 cents lower for the second consecutive week but should find support at current levels with the price near the December lows. This comes amidst a weaker Brazilian currency which is coming off a three month low as well more wet weather in growing spots. Brazil is expected to have an off year for the crop with other producers reported to have supply issues which may contribute to a global supply deficit for the upcoming season. Most recent COT reports have indicated a large net short position which may fuel some short covering with a close above 105 needed to accelerate a move higher.
Coffee May ’19 Daily Chart