RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

As July coffee nears the end of its life, we can see a drastic violation of the 12868 critical support area we mentioned in our last article. Most of this weak price action in coffee can be contributed to sluggish demand, and the Brazilian harvest, currently underway, is looking to replenish any tight supply issues that may currently be in place. Outside market forces include the UK election taking place on Thursday of this week, coupled with the testimony of former FBI director, James Comey. These are fundamental forces that may shake things up and affect the coffee market quite a bit. For now, we will wait and watch.

On the daily chart of July coffee below, we mentioned the violation of the 12868 critical low from April 17th, which shortly after, was followed up by some sideways consolidation. We now see coffee prices in a well-defined range, which will likely be a good opportunity for swing traders. We haven’t seen prices in this area since March of 2016. The 12450 area will now become the key support level to monitor because a violation of this area will likely result in a continuation of the downtrend.


Jul ’17 Coffee Daily Chart

Jul '17 Coffee 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.