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Coffee: Time To Go Long The Black Brew?

Published 08/21/2018, 12:10 AM
Updated 07/09/2023, 06:31 AM

Coffee prices have bean steadily grinding down, but as it plunges one can't help but wonder if it might start perking up again. Coffee prices are currently percolating around the major support level of the past decade, and if they manage to hold at support, coffee might just have a shot (or even a "double shot").

The risk: prices spill over and pour down to new lows. The chart below comes from the Global Cross Asset Market Monitor.

Coffee 2011-2018

Bonus chart: in contrast to 2016, speculative futures positioning has come right off the boil, and we're now seeing large short positioning filter through. With such extreme positioning, if those shorts end up taking their's to go, then coffee could pick up steam pronto.

Coffee - Speculative Futures Positioning 1995-2018

Latest comments

A few less coffee puns would make this easier to read
greatest analysis yet of how coffee has been getting roasted
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