Coffee Prices Near A 6 Week High

Coffee Futures---Coffee futures in the July contract settled last Friday in New York at 89.00 while currently trading at 93.20 up over 400 points for the trading week as prices are right near a 6 week high. I will be recommending a bullish position if prices close above 95.20 while then placing the stop loss under the contract low and 14 year low of 87.60 as the risk would be around $2,900 per contract plus slippage are commission.

Heavy rains have entered the country of Brazil which is the largest producer of coffee in the world as we are also entering the frost season which in 1994 decimated the coffee crop sending prices from around 75 all the way up to 250 in a matter of the month as investors are putting a price premium back into this market.

The chart structure is outstanding at the present time due to the fact of the incredible low volatility that we have witnessed in 2019 so look to play this to the upside in my opinion.

Coffee prices are now trading above their 20 day but still below their 100 day moving average which stands around the 99 level as the risk/reward is starting to become into your favor as I will not take a short position as I think prices have finally bottomed out.

TREND: ---MIXED

CHART STRUCTURE: EXCELLENT

VOLATILITY: LOW

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