Bearish run continues, Arabica Coffee down to $180.35 (-0.63%)

Coffee has been losing ground for 3 days, shedding a total of 5.58% of its value. Similar trend today: ICE Coffee is down to $180.35 per pound, after ending yesterday at $181.5. Overall, a 0.63% loss or $1.15 today.

United States Core Consumer Prices is next today at 12:30 UTC.

While price action maintains a negative bias, United States Federal Budget Balance (May) came out at -240 billion, while a consensus of analysts was expecting -236 billion. United States 10-Year Note Auction released yesterday at 17:00 UTC with a figure of 3.791, while the previous figure was 3.448. United States 3-Year Note Auction came out at 4.202.

Bollinger Bands® shows an indication of recovery: the lower band is at $175.24, a low enough level to, generally, suggest that Coffee is trading below its fair value.

Technical analysis shows that the Coffee future (currently on a downtrend) might reverse course and start going up in the short term.

In the meantime, negative performances are also seen in other Softs as Sugar is trading around $24.87 (down 28 cents).

Positive performances can be seen by looking at other Softs markets as Cocoa gained 1.05% and is now trading at $3,163.

Looking ahead, ongoing depreciation may be prolonged as projections for United States Producer Price Index are set for a continuation of decline with -0.1% while previous data was 0.2%; data will be released tomorrow at 12:30 UTC.

Some optimism can drawn from the fact that United States Crude Oil Inventories is projected to outperform its last figure with 1.48 million. It previously stood at -451,000; data will be released tomorrow at 14:30 UTC.

Furthermore, United States Consumer Price Index is expected today at 12:30 UTC.

Having soared to a high of $243.4 approximately 9 months ago, ICE Coffee is now trading 25.43% lower.