RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

Some continued wet weather is key growing areas of Brazil has helped to keep March coffee futures prices in check, as earlier dry weather had been forecasted to be a large bullish factor. However, lock downs on restaurants and coffee houses will continue to prompt sluggish demand on coffee, but the promise of a future-tight crop should continue to provide March coffee prices with some support.

The UK has announced that they will begin distributing the Pfizer vaccine, which should be viewed as a bullish factor on the demand side for coffee. Although several factors will continue to play a role in how effective the vaccine and distribution of the vaccine will be, on-the-whole, the news is positive for the future of coffee shops and restaurants.

From a technical perspective, the aggressive bullish crossover of the price action through the 200-day MA has been followed by consolidation and strong support. The March coffee price action has also managed to back and fill the gap from 11/27/20 at 119, and has subsequently held support above the 200-day MA. There are several strategies that traders can apply in this situation.  

For more frequent commentary, please check out and subscribe to my daily futures market videos on coffee and other commodities. https://www.youtube.com/channel/UCfl6aH8DY9UiqFOMpeGJOCg?view_as=subscriber

Coffee Mar ’21 Daily Chart
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Adam Tuiaana

Senior Market Strategist
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.
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