Will coffee futures rebound? Don't bet on it
Since peaking in late April, coffee futures have plunged 28%. Could things get even worse? Absolutely. Coffee futures are prone to epic rallies and equally devastating declines. While we can't predict exactly where coffee goes from here, a signal from our Optix indicator suggests that traders remain focused on the short side of this volatile market.
The chart and table below highlight all dates when the 100-day moving average of our Coffee Optix indicator crossed below 65, and the subsequent performance for coffee futures. As usual, there is "an exception to the rule (the September 2021 signal)." But beyond that, six and twelve-month results bode poorly for the prospects of a significant reversal in coffee futures.


