There is no real change from the past couple of weeks for coffee. The bears are still solidly in control, with a large Brazilian crop on the horizon, strong US dollar and favorable weather throughout many of Brazil’s growing areas. From a technical perspective, ongoing violation of critical support areas (most recently 11690) continue to paint an extremely bearish picture for traders. As it stands, I am very comfortable with short, long term positions using long put options that allow exposure and leverage, while managing risk effectively. Expect more of the same for the foreseeable future.
Coffee May ’18 Daily Chart