Wait what is going on with coffee prices right now

[PivotHunter]

Hey guys, I’m seeing some crazy news about Arabica coffee hitting a literal record high today and I’m honestly a bit lost. I’ve been trying to follow the macro stuff but this one has me scratching my head. Apparently, the threat of tariffs and sanctions on Colombia got pulled back, but for some reason, the market is reacting by pushing prices to an ATH. Ngl as a total newbie I thought less drama with trade would make things cheaper, so why is it spiking so hard?

I’m feeling some serious FOMO right now because those green candles look insane, but I don’t want to be the guy who buys the absolute top and gets dumped on by the pros. I’m still learning how commodities work compared to forex or stocks, and this volatility is kind of scary. Is this just a massive pump because of the news or is there actually a reason to hold this long-term? I’d love some advice from the legends in here on whether I should try to scalp a bit or if I missed the boat entirely.

Do you think the price stays this high or are we looking at a massive correction soon?

 

[Mason Brooks]

Vietnam crop concerns plus drought in Brazil turned the whole complex into a complete supply squeeze.

That said, the daily ATR right now is an absolute widow-maker. If anyone here is trading KC or Robusta futures without sizing down by at least half, you're asking for trouble. One headline or sudden weather shift and it'll gap 400 points against you before your stop even fills. Play it small or stay on the sidelines.

 

[LeoSterling]

[QUOTE="Mason Brooks, post: 1760]One headline or sudden weather shift and it'll gap 400 points against you before your stop even fills.[/QUOTE]

Man ain't lying, got my whole portfolio rekt on robusta last week trying to catch a falling knife. Absolute widow-maker is putting it mildly. Sitting this one out before I'm eating instant ramen for the rest of the quarter.