Coffee Prices Stuck In 3 Week Consolidation

Coffee Futures---Coffee futures in the May contract finished down 20 points at 96.65 a pound still experiencing extremely low volatility stuck in a 3 week consolidation period.

In my opinion I believe a bottom is going to be formed very soon as several other commodities out of the soft commodity sector such as orange juice, and sugar have moved higher in recent weeks and I think that will start to bleed over into the coffee market.

Coffee is still trading below its 20 and 100 day moving average as the contract low was hit on March 12th at 94.65 as that level has to hold for the bulls to have any hope.

Carryover levels still remain at 4 1/2 year high with production numbers for the Brazilian crop in 2019 around 55.4 million bags, but what we really need to push prices higher is stronger demand or some type of agreement between the United States and China on trade, but I do believe prices are very close to bottoming.

TREND: ---SIDEWAYS---LOWER

CHART STRUCTURE: EXCELLENT

VOLATILITY---LOW

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