A Coffee Buzz

March ‘22 coffee futures continue the rally this morning with another leg up following last week’s break-out to new multi-year highs. Coffee has been a bull market throughout 2021 with prices driving higher based on strong supply side concerns and a rapid return of demand. The short story is that supplies are tight. Reports indicate exchange held coffee supplies have fallen by over 393,000 bags since the end of June. Brazil, the largest coffee producer, had a challenging year in terms of growing conditions leading to a weak harvest. It’s not expected that the next harvest will be any better. To amplify the situation logistics as most know have been a nightmare. Columbia has had exports slowed by protests and roadblocks earlier this year. Brazil has seen challenging road conditions, and the global shipping container shortage has created a serious set back. There is still a lot of bullish fuel in this market but pressure from outside markets or a risk-off environment could lead to sharp pull-backs.

Eric Scoles

Market Strategist


Main: 888-441-8555

Direct: 312-858-7305

Fax: 888-370-2221

Blue Line Futures LLC

141 W. Jackson #2845

Chicago IL 60604

Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.

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