Having ended Tuesday at $158.4, Coffee dropped to $150.6, hitting its lowest point in 1 year. It later recovered $6.15 and trades at $156.75.
Arabica Coffee is currently trading at $156.75 following the release of Building Permits (Oct) data from the United States.
On the flip side, positive data for Coffee released earlier when United States Initial Jobless Claims beat analyst expectations of 225,000 and the previous reading of 226,000 with new data of 222,000.
Amid the market gloom, United States Philadelphia Fed Manufacturing Index (Nov) released today at 13:30 UTC with a figure of -19.4, while the previous figure was -8.7. United States Building Permits (Oct) came out at 1.53 million, while a consensus of analysts was expecting 1.51 million.
Technical chart analysis shows Coffee could begin to recover as it approaches significant support, now $2.92 away from $153.83. Dipping below could be an indication that further losses are ahead. Trend-focused traders would be interested to note that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. According to momentum evaluation, the Relative Strength Index indicates Coffee is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. Asset volatility analysis shows that the Coffee future's lower Bollinger Band® is at $153.34, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
With market volatility ebbing, the current technical outlook indicates the Coffee future will remain range-bound for the immediate future.
In the meantime, negative performances are also seen in other Softs as after ending yesterday's session at $20.27, Sugar lost 39 cents and is trading around $19.88. Cocoa closed at $2,447 (down 2.2%). Cotton is down to $87.29, losing $1.15, after closing at $88.44 in the preceding trading session.
Furthermore, United States Existing Home Sales (Oct) is scheduled for tomorrow at 15:00 UTC.
Having set a significant high of $258.7 2 days ago, Arabica Coffee is trading 1.05% lower.