Coffee Futures Near Lows Before Record Vietnamese Crop

Coffee futures have been flirting with their lows these last two weeks reportedly in anticipation of a record “Robusta” coffee crop in Vietnam.  Coffee futures ended the day only up slightly.

Vietnam – the world’s biggest producer of the “Robusta” variety – is forecasted to harvest a record 29M bags of coffee for the season that starts this month.  Coffee prices have fallen since rallying last week, but still maintaining in the trading range of last week.
           
Coffee (futures) are under pressure due to a huge supply from around the world.  While oversold, the coffee market still lacks fundamental news to move higher,” said Christian Moreno, a commodities broker for HighGround Trading Group in Chicago, regarding the current coffee futures situation.  Moreno added,We might see oversold bounces from the Oct 1st lows but probably something to sell into.”

The trend for coffee futures is down with no “bottom” yet in sight.  This is a very thin market that is only suitable for larger sized accounts.

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