The monster rally that unfolded across the commodities spectrum post-COVID crash lows carried everything from precious metals, energy, lumber and agricultural prices higher.
While certain commodities have recently pulled back, others have stayed the course. One such bullish commodity is coffee.
Coffee futures prices have remained strong and could be headed nearly 25% higher if this warm cup of java decides to heat up again. Traders are watching for a coffee futures breakout to new five-year highs.
Looking at the “weekly” chart above, you can see that coffee futures are testing the $175 price zone at (1), which also marks the 2016 highs. A coffee futures breakout above this level, could see coffee prices rise to $225, or more than 25% higher.
Will coffee futures prices continue to perk up and head much higher? Perhaps to the $225 price target? Watch for a breakout at (1).