Coffee Futures Continue RallyPosted 11/06/2019 9:03AM CT |
Dec ’19 coffee futures continue to rally as this market news shifts to production. According to some reports there could be a global deficit of about half a million bags for the 2019/20 season and managed money is still net short 45,692 contracts (as of the Friday Nov 1st COT summary) leaving plenty of fuel for short covering to support a more extended rally. Further fundamental support comes from reports indicating a 1.5% rise in coffee consumption over the previous year. Coffee is showing great strength on the charts with a steep and consistent rise since mid-October. It’s possible to see a pull-back in the near-future, but I would consider this a bullish opportunity as coffee futures have plenty of reason to see higher prices.
Coffee Dec ’19 Daily Chart