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Coffee Sideways Consolidation

Posted 09/04/2019 7:53AM CT | Adam Tuiaana

Although December coffee prices have met firm resistance at the 9750 level, support levels are holding strong. In my last article, I had outlined the key reversal up that may be taking place in December coffee prices. The reversal up looks to be from the August 20th price action, where the high was 9565 and the low was 9340. This technical daily candle looks to have precipitated some good follow-through support. Key producers in Columbia may have added some support to December coffee prices, but offsetting any potential bull run is the currently bearish news from record high supply numbers from Brazil last season. So much of that supply needs to be met with strong demand, and with the U.S. stock market continuing to endure massive volatile swings, lack of resolution with ongoing U.S.-China trade talks, I would suspect it will be quite a bit of time until December coffee makes a bull run back to the 100 level.

There should be solid support at the 9500 while the consolidation in price action takes place. Yesterday’s low of 9420 falls short of the 9340 reversal-up day. Upside resistance comes in around 9750, and a break above this well-defined range could signal a visit back to the 100 level.

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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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