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December Coffee Continues Downwards

Posted 09/13/2018 9:59AM CT | Adam Tuiaana

Fundamentals still seem to be the major driver to keep pressure on coffee prices. We have seen a nice pullback and consolidation, but weakness is still underway. Traders still say that September coffee is oversold, and it looks to be trading sideways for the time being. The Hightower Group has reported “record harvest just finishing in Brazil” and also “the market faces a record Vietnamese harvest just ahead.” It will take serious supply demand changes from the norm to spark any significant recovery in coffee prices.

On the technical side, coffee seems to be holding support at 100, and reached sub 99 levels this past week. For now, we’ll continue to hold a bearish outlook but hold off on new positions until we see a violation of 9865 (with subsequent pullback after that). Consider using put options to manage risk effectively.

Coffee Dec ’18 Daily Chart

Coffee Dec '18 Daily Chart

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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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