May Coffee Futures Continues DownwardPosted 03/15/2018 8:36AM CT |
Extremely volatile and choppy sideways price action seems to be the ongoing story for May coffee prices. As is the case in many long term down trends, May coffee prices continue to have solid and steep corrections, as part of the downward continuation. Continued wet weather in Brazil is managing to put pressure on May prices this morning. On a side note, the addition of Larry Kudlow as Trump’s top economic advisor will likely promise solid efforts to continue US dollar strength, inversely (and ultimately) pushing other currencies and commodity prices lower. From a technical perspective, ongoing violation of critical support areas (initially 120 and then 11850 shortly thereafter) have done nothing but convince already-bearish traders that a continued downtrend is underway. Although traders should expect steep corrections, the bears seem to be fully in control at this point.
On a different but related note, Happy 13th Birthday to my son Christian! Although decaf is all Daddy allows him to have right now, he is none-the-less a big coffee fan.
Coffee May ’18 Daily Chart