Coffee prices have been steadily grinding down, but as coffee plunges one can’t help but wonder if it might start perking up again. Coffee prices are currently percolating around the major support level of the past decade, and if they manage to hold at support coffee might just have a shot (or even a “double shot”). The risk is prices spillover, and pour down to new lows.  The chart below comes from the Global Cross Asset Market Monitor.

Bonus chart: in contrast to 2016 speculative futures positioning has come right off the boil, and we’re now seeing large short positioning filter through.  With such extreme positioning, if those shorts end up taking their’s to go, then coffee could pick up steam pronto.