After closing Friday at $190.4, the Coffee future dropped to $183.3 today, hitting its lowest point in 1 year during yesterday's session. It later recovered 95 cents and is now trading at $184.25.
United States's Consumer Confidence new data released of 102.5 below its previous figure.
United States Consumer Confidence published today at 14:00 UTC came out at 102.5, falling short of the 106.5 projections and continuing its decline from the previous 107.8 figure.
Amid the market gloom, United States API Weekly Crude Oil Stock came out at 4.52 million, while a consensus of analysts was expecting 200,000. United States 2-Year Note Auction released today at 17:00 UTC with a figure of 4.46, while the previous figure was 4.29.
Despite being in the red so far in the current trading session, Coffee peaked above its 5 day Simple Moving Average around $191.95 — typically an early indicator of a new bullish trend beginning to emerge. Bollinger Bands® shows an indication of recovery: the lower band is at $179.64, a low enough level to, generally, suggest that Coffee is trading below its fair value. Despite this, Coffee could begin to recover as it approaches significant support, now $3.9 away from $188.15. Dipping below could be an indication that further losses are ahead.
Overall, looking at the technical analysis landscape, it seems the Coffee future —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
Taking a look at other Softs commodities, negative performances are evident as after ending yesterday's session at $2,337, Cocoa lost $47 and is trading around $2,290.
Positive performances can be seen by looking at other Softs markets as having closed the previous session at $76.13, Cotton is up 2.86% today to currently trade at around $78.31.
Some optimism can drawn from the fact that United States Crude Oil Inventories is projected to outperform its last figure with 200,000. It previously stood at -1.73 million; data will be released tomorrow at 14:30 UTC.
Furthermore, United States New Home Sales (Sep) is expected tomorrow at 14:00 UTC.
The Coffee future reached a significant high of $258.7 around 8 months ago but has lost 26.4% since then.