December coffee has rebounded from the summer lows, bottoming out around the 120 level. There is news out of key growing areas in Brazil that rainfall will be very light, which has likely prompted a strong surge in the December coffee prices. In addition, we’re seeing a fast rising stock market which should lead to a more “risk-on” appetite for commodity traders. On top of all of this, The Hightower Group has reported that “coffee exports in Brazil’s busiest port have been stacking up due to dredging issues”. This should lend continued support to December coffee prices.
The near term resistance area of 13290 was quickly surpassed this week, as December coffee prices now look to challenge the highs from August. We’ve now seen five straight days of strong, positive, price action, which looks very bullish. Look for December coffee prices to make a run up to the 14750 level over the next few days.
Dec ’17 Coffee Daily Chart