Have Coffee Prices Topped Out ?

Have Coffee Prices Topped Out ?
Have Coffee Prices Topped Out ?

Coffee Futures—Coffee futures in the July contract is trading lower for the 2nd consecutive session starting the week off on a negative note this Monday afternoon in New York down 245 points or 1.63% at 147.65 a pound as prices are looking to fill the gap on the daily chart which was created in last week’s trade.

I have been recommending a bullish position over the last month or so from around the 126.00 level and if you took that trade continue to place the stop-loss under the 2 week low standing at 143.85 on a closing basis only as the proper exit strategy.

At the present time the chart structure is outstanding due to the fact that prices have gone nowhere over the last couple of weeks stalling out around the 150.00 level so continue to place the proper stop loss and if we are clipped move on and look at other markets that are beginning to trend, however I will not take a short position as I will only play coffee from the long side in 2021. Fundamentally speaking outlook for rain in Brazil’s coffee-growing areas eased some drought concerns.  Somar Meteorologia on Thursday forecast 20 mm of rain for Brazil’s coffee-growing areas starting Saturday with rainfall amounts of 20-40 mm in Minas Gerais through June 2.

Another negative for coffee prices was weakness in the Brazilian Real which fell to a 2-week low against the dollar on Friday.  A weaker real encourages export selling from Brazil’s coffee producers.







 If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com 




 Email: mseery@seeryfutures.com



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