While on a 5 day downtrend, dropping a total of 10.76%, More of the same today: trading lower, Coffee is currently down $1.6 as it ranges between $161.25 and $166.1 so far today.
New United States Crude Oil Inventories improved upon the previous -3.12 million figure while also exceeding analyst expectations with a reading of 3.92 million.
Nonetheless, encouraging indicators for ICE Coffee published earlier when data for United States Crude Oil Inventories published today at 15:30 UTC came out at 3.92 million, beating projections of 1.36 million and showing improvement over the preceding figure of -3.12 million.
Meanwhile, United States Cushing Crude Oil Inventories released today at 15:30 UTC with a figure of -923,000, while the previous figure was 1.27 million. United States API Weekly Crude Oil Stock came out at 5.62 million, while a consensus of analysts was expecting 1.1 million.
Support/Resistance levels obtained from chart analysis indicate that Coffee could begin to recover as it approaches significant support, now 10 cents away from $162.65. Dipping below could be an indication that further losses are ahead. With regards to technical trend indicators, chart analysis show 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. Momentum evaluation shows that the Relative Strength Index indicates Arabica Coffee is in an oversold condition, which could precipitate a reversal and set up a new bullish phase. According to asset volatility analysis, Bollinger Bands® shows an indication of recovery: the lower band is at $160.39, a low enough level to, generally, suggest that Arabica Coffee is trading below its fair value.
With market volatility ebbing, the current technical outlook indicates Arabica Coffee will remain range-bound for the immediate future.
Taking a look at other Softs commodities, negative performances are evident as Cotton is trading around $85.84 (down $1.84).
Positive performances can be seen by looking at other Softs markets as Sugar added 1.16% to its value, now trading at $19.22.
Furthermore, United States Consumer Price Index is expected tomorrow at 13:30 UTC. United States Core Consumer Prices figure is projected at 0.5%. It previously stood at 0.6%; data will be released tomorrow at 13:30 UTC. United States Consumer Price Index figure is projected at 8%. It previously stood at 8.2%; data will be released tomorrow at 13:30 UTC.
The Coffee future has lost 1.38% over the last a day.