Is Coffee the Ultimate Tariff Fade Trade?

There has been a lot of talk of tariffs which added extra volatility to the markets but eventually the stock market shrugged off the news and is back on it's up trend.

Coffee seems to be where Large Speculators (blue column) are focusing their longs as they are now at max levels we have not seen before with coffee at new highs. This now skews the reward of the long trade, as the market is running out of buyers.

If tariffs are implemented on CA, a large supplier of US coffee, it may provide an opportunity to fade this rally if Coffee does not react the way it should react to this bullish news.

This is definitely a market worth watching for tariff news and other news that may impact the price of coffee.