December coffee is currently trading in the middle of no man’s land today. Over the past couple weeks we saw a massive selloff from the 142 level, but December coffee prices were able to hold support last week at 124. Most of the volatility is likely due to the volatile weather patterns over key growing areas of Brazil. Is the demand for coffee still what it once was? Although the US stock market has been able to hold support, the US dollar had steadily and aggressively been rising through the end of September, thus adding pressure to December coffee prices and other commodities.
The near term resistance area will be 13279, with strong support coming in at 12425. For the time being, we will likely see consolidation over the next week as the weather issues in Brazil garner more solid direction.
Dec ’17 Coffee Daily Chart