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May Coffee Violates Support

Posted 02/28/2018 9:08AM CT | Adam Tuiaana

Although we have seen some strength over the past week in May coffee prices, the US dollar continues to show strength, adding ongoing pressure to coffee prices. It was reported by The Hightower Group that “Vietnam’s coffee exports for the January- February period were expected to come in near 347,000 tonnes” but it looks like they were short of this number. This has allowed coffee prices to hold some support at the 120 level. However, we cannot deny the fact coffee prices did manage to violate the critical low of 12051 from December 12 of last year. Although some short covering and consolidation may take place in the near term, with the inverse pressure continuing from a strong US dollar and large upcoming crop in Brazil, I would expect another retest of the 118 area in the next week or so.

Coffee May ’18 Daily Chart

coffee_may18_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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