RJO FuturesCast

Daily Futures Market News, Commentary, & Insight

March coffee is seeing a bit of support this morning from what may be a short covering rally. Coffee prices continue to be pinned down by a reported huge Vietnamese crop. The Hightower Group has reported that analyst feel the Vietnamese crop “will be close to a record”. Coffee prices will need some solid demand strength and supply news that falls short of said expectations. Some feel that coffee prices are oversold, and due for some kind of pullback to the 125-135 range, which coffee prices had been in throughout most of October and November. However, we cannot overlook that fact coffee prices not only violated the 125 range low, but also managed to violate the 119 critical support low from June. Yes, coffee prices have been able to hold some support, but traders should assume that follow through selling is on the horizon. Consider buying put options with strikes below the aforementioned critical low of 119. On this rally, you should be able to get them fairly cheap.

Coffee Mar ’18 Daily Chart

Coffee_Mar18_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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