March coffee futures have breached the 1.29 level, not seen since September of 2020. This level of past consolidation is largely due to the vaccine rollout, prompting optimism that more coffee shops and restaurants will ultimately return, with coffee-drinking customers. However, the rollout has been slow, with new shutdowns looming through the UK and the potential for others to follow suit. March coffee prices continue to hold support above the 25-day MA, with high levels of volume and open interest.
From a technical perspective, strong support should be held at the 50-day MA, resting at 1.17. In addition, a break above the key resistance level of 1.29 is also very bullish, and the subsequent selloff back to the 1.22 level should be a great opportunity for bulls to step back in.
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