Softs

Coffee Futures Continue to Rally

Posted 09/11/2019 9:48AM CTEric Scoles

Dec ’19 coffee continue to rally for a second day after closing above the range it had been consolidating in on Monday. Managed funds are still heavily net short on this commodity and could provide a significant amount of fuel to rising prices by simply covering their shorts and stepping to the sidelines. My analysis suggests we could see Dec ’19 coffee reach up to 118’00 again this fall with strong support from both supply and demand aspects in the fundamentals. Dry weather in Brazil currently could impact the coffee trees ability to flower which may stress impact the next production season as well. If the fundamentals continue on a bullish track and inspire managed money funds to convert from today’s shorts into tomorrow’s longs, coffee could become a full-blown bull market. 

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.