The slow but sure re-opening of the world economy has the prices of September coffee futures quite confused at the minute. You have a strong stock market bouncing back due to reopening and continued massive support from the Fed, weighed directly against the promise of continued new COVID 19 cases that have the US and China slowing things down until we can see a clear impact. As many prepare to return to work, shopping and dining outside of their homes, the current weak demand must show some promise for September coffee prices to find support. Many restaurants and coffee shops that have managed to remain solvent (quite remarkably), while complying with social distancing guidelines will continue to suffer until they can enjoy doing business at 100% capacity.  Until then, with a sizeable Brazilian crop on the horizon and continued uncertainty of demand, coffee prices will likely continue lower.

From a technical perspective, a clear and violent violation of the 105 level to the downside (see daily chart attached) may see a pull back to that level before a continued selloff. While these massive swings in coffee prices continue, with questionable demand on the horizon, many traders may benefit from either being short or staying in cash for the time being.