RJO FuturesCast

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December coffee has now violated a major support area twice in the last two weeks. The low of 12430 from October 5 should have been enough to support December coffee, but this recent selloff says otherwise. Likely, it’s the continued wet weather in Brazil that has kept many bulls from entering the market, or short sellers from covering. Coffee prices want to move higher, but the simple lack of any news that would otherwise push prices higher is currently winning this battle. In addition, the continued positive price action from the US dollar, which has been in place since early September, will also keep coffee prices in check. For now, the aforementioned 12430 level should pose major resistance for coffee prices.

Look for December coffee prices to continue their downward spiral to at least the 120 level, with the 11910 low from June 22 acting as strong support. 


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.