Softs

Coffee Futures Continue Rally

Posted 11/06/2019 9:03AM CTEric Scoles

Dec ’19 coffee futures continue to rally as this market news shifts to production. According to some reports there could be a global deficit of about half a million bags for the 2019/20 season and managed money is still net short 45,692 contracts (as of the Friday Nov 1st COT summary) leaving plenty of fuel for short covering to support a more extended rally. Further fundamental support comes from reports indicating a 1.5% rise in coffee consumption over the previous year. Coffee is showing great strength on the charts with a steep and consistent rise since mid-October. It’s possible to see a pull-back in the near-future, but I would consider this a bullish opportunity as coffee futures have plenty of reason to see higher prices.

Coffee Dec ’19 Daily Chart

Eric Scoles

Eric entered the workforce during the summer of 2007 as an apprentice tradesman just before the big crash and recession which followed. The impact of which strongly inspired his interest in the financial industry and began him as a student of the markets. Eric worked throughout the following years developing strong communication skills and risk management practices in the aviation and marketing industries before ultimately getting licensed and turning his passion into a career as a market strategist with RJO Futures.