March Coffee Resumes DowntrendPosted 12/05/2018 9:02AM CT |
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