Seeing coffee hit fresh ATHs reminds me why soft commodities will humble you fast

Julian Reed 16

New member
Joined
Oct 10, 2026
Messages
1
Arabica printing new records after that whole Colombia tariff scare got walked back brings back some wild memories for me. I swear, trading softs when politics get involved is an absolute blender, and if you haven't traded coffee during a supply squeeze before, you need to step carefully right now. Years ago I learned the hard way that chasing vertical moves on headline risk usually ends with you holding the heaviest bag of your life.

The biggest lesson I can share with anyone tempted to FOMO long at these levels is that agricultural contracts don't respect technicals the way major FX pairs or index futures do. When headlines about sanctions or tariffs drop, liquidity completely evaporates and your stops will slip straight through the floor. Back during a similar spike, I got cocky with my leverage thinking a trend was guaranteed, only to wake up to a political reversal that blew right through my risk parameters before the opening bell even rang.

If you are going to trade this craziness, cut your sizing in half, seriously. Give the market room to breathe because the daily swings on Arabica right now can wipe an account out before you even realize a headline crossed the tape. Treat it like a pure momentum scalp or just sit on your hands until the volatility settles down and we get a clean structure to work with.

Anyone here actually holding longs from lower down, or are you guys waiting to fade this blow-off top?
 

Similar threads

Back
Top