While the coffee market is reaching low RSI numbers (oversold) and looking for a short term low, the continued decline in the open interest is a negative factor and the technical actions remains sluggish as well. March coffee closed slightly lower on the session yesterday, but did salvage a little bounce off of the early morning lows, which reached as low as down 3%. The market is down over 2% since Monday. Harvest in Vietnam should be slowed by heavy rains this weekend, while Indonesia is also expecting heavy storms, although those will be isolated. Weakness in Vietnamese cash markets were a bearish force on the session to help pull the market lower yesterday. With conditions in oversold territory, it will not take much positive news to spark a bounce from these levels. March coffee has support coming in at 110.20 and 109.10. Resistance is at 115.95 and 118.75.
Coffee Mar ’19 Daily Chart