Fundamentally, the overall outlook consensus for May coffee is continued weak demand with a sizeable near and long-term supply situation. Key growing regions of Vietnam have been getting plenty of rain and favorable weather, which continues to keep pressure on May coffee prices. 

The key support level of 12725 from November 1 was violated on November 20. Subsequently, May coffee prices corrected back up to the top of what had been a fairly well-defined and reliable range (134-130), but the violation of the aforementioned 12725 critical support area cannot be overlooked. This looks like a good opportunity to range trade May coffee from the 126 level, back up to the 132 level in the near-term.

Coffee May ’18 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.