March coffee prices continue to fall far below the 200-day moving average, which was challenged in October and November. The fundamental driver to the downside price action is the formidably bearish supply news coming out of the number one producer of world coffee, Brazil. The Hightower Group has reported “Brazil November exports are at a record high”. In addition, large exports numbers out of Columbia have also added pressure to March coffee prices.

A recent violation of the 11025 level has resulted in continued selling pressure and although many traders feel that March coffee prices are at oversold levels, the market is finding it hard to garner new support from buyers.  Look for a revisit of the 100 level soon.

Coffee Mar ’19 Daily Chart

Coffee Mar '19 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.