Thursday’s Technical Analysis: US Coffee

Posted by: : Paul EbelingPosted on: January 29, 2015 Thursday's Technical Analysis: US Coffee

Thursday’s Technical Analysis: US Coffee

US Coffee CFD closed higher Wednesday.

The mid-range close set the stage for a steady to higher open Thursday.

Stochastics and the RSI are Bearish indicating that sideways to lower prices are possible near term.

If US Coffee extends the decline off of the January  highs, the reaction low crossing is the next Southside target.

Closes above the 20-Day MA crossing will confirm that a low is in.


Coffee is the 2nd most commonly traded commodity in the world (measured by monetary volume), is 2nd only to Crude Oil as a source of foreign exchange to developing countries, according to the International Coffee Organization.

While production and consumption of many commodities tend to rise and fall based on price, shifts in Coffee supply and demand are not so prone to price changes as people look for their morning cup of Coffee at whatever the price is.

An important distinction for Coffee futures is that 2  different types of coffee are traded on the world’s exchanges.

US  Coffee

US Coffee futures and options are traded in New York on the Intercontinental Exchange (ICE, formerly the New York Board of Trade).

  • The size of the US Coffee “KC” futures contract is 37,500 lbs
  • Coffee commodity trading is now done electronically.
  • Coffee futures prices are quoted in cents per pound, and the minimum price fluctuation is 5/100 cent/pound, equivalent to $18.75 per contract.
  • A 1-cent change in price equals $375.
  • The coffee futures contract months are March, May, July, September and December.
  • The contract prices physical delivery of exchange-grade green beans from one of 19 countries of origin in a licensed warehouse to one of several ports in the United States and Europe.

International Coffee Market

London Coffee futures are traded on the Euronext.liffe.

  • The size of this Coffee futures contract is 10 metric tons.
  • Coffee futures prices are quoted in USD’s per metric ton with the minimum price movement $1 per ton or $10 for the contract.
  • Contract delivery months are January, March, May, July, September and November with 10 delivery months available for trading.

Other international exchanges that trade coffee futures include the Singapore Commodity Exchange (Robusta), the Commodities & Futures Exchange (BM&F) in Brazil (Arabica) and the Tokyo Grain Exchange (Arabica and Robusta)

Stay tuned.


Paul Ebeling

The following two tabs change content below.

Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.

Trade FX, Equities and Options with the World's Leading Platform , call our trade desk 631 482 0376, or contact us to get started.

Research 1 of 6

Recent News