ICE Coffee drops from $170.1 to $163.7 per pound, losing $6.4 (3.76%) today.
Coffee fell below the $167.08 support zone and moved $3.38 beyond it; the next level of support with significant buyer interest is estimated at $165.33. Coffee made an initial break below its 5 day Simple Moving Average at $168.4, a possible indication of a forthcoming negative trend. Despite this, Arabica Coffee's lower Bollinger Band® is at $158.72, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains.
Overall, looking at the technical analysis landscape, it seems that although indicators are mixed and some are pointing in different directions further drawbacks may be next for Arabica Coffee.
In the meantime, negative performances are also seen in other Softs as Cotton drops 5.26% to trade around $83.56. Cocoa is down to $2,493, losing $27, after closing at $2,520 in the preceding trading session.
Positive performances can be seen by looking at other Softs markets as having closed the previous session at $19.64, Sugar is up 0.51% today to currently trade at around $19.74.
Some optimism can drawn from the fact that United States Producer Price Index is projected to outperform its last figure with 0.5%. It previously stood at 0.4%; data will be released tomorrow at 13:30 UTC.
Having set a significant high of $258.7 5 days ago, Coffee is trading 3% lower.