Coffee Weakness Is StrongPosted 10/16/2019 9:43AM CT |
The recent sell-off in December coffee prices have been sparked by a number of fundamental issues. For the most part, the Brazilian and Columbian currencies have been weakening, which has put some strong pressure on December coffee prices. In addition, reports for a very large upcoming crop from India has added to the bearish move. Our friends at The Hightower Group have reported that “Vietnam’s upcoming crop remains on-course for a large production total, however, and that has helped to drive London Robusta prices down to near multi-year low levels”
On the technical side, the failed bullish symmetrical triangle prompted an immediate sel-loff which ultimately violated the 9500 support level. In addition, we have also broken below the May 7th critical low of 9370 and are comfortably trading below this level. In addition, volume levels spiked and held steady during this entire selloff, likely prompting additional bears to become involved on the short side.