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

Dec '17 Coffee Daily Chart

Adam Tuiaana

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.