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June 21, 2023
Arabica Coffee is down to $172 per pound, after ending yesterday at $176.1. Overall, a 2.33% loss or $4.1 today.
ICE Coffee is currently trading at $172 following the release of Fed Chair Powell testimony data from the United States.
Amid the market gloom, United States Building Permits (May) came out at 1.49 million, while a consensus of analysts was expecting 1.43 million. United States API Weekly Crude Oil Stock released today at 20:30 UTC with a figure of -1.25 million, while the previous figure was 1 million. Fresh 20-Year Bond Auction data from United States came out at 4.01.
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. Coffee has just crossed the lower Bollinger Band® at $172.58, indicating further losses could be forthcoming.
Looking forward, ICE Coffee is poised to extend its strong downtrend and continue declining.
In the meantime, negative performances are also seen in other Softs as Cotton is down to $81.77, losing 97 cents, after closing at $82.74 in the preceding trading session. Sugar closed at $25.86 (down 0.65%).
Though Coffee has been dropping, other Softs have been performing better: Cocoa is up 0.53%.
Looking ahead, ongoing depreciation may be prolonged as projections for United States Crude Oil Inventories are set for a continuation of decline with 1.87 million while previous data was 7.92 million; data will be released tomorrow at 15:00 UTC.
Some optimism can drawn from the fact that United States Initial Jobless Claims is projected to outperform its last figure with 260,000. It previously stood at 262,000; data will be released tomorrow at 12:30 UTC.
Furthermore, United States Existing Home Sales (May) is scheduled for tomorrow at 14:00 UTC.
Having set a significant high of $243.4 9 months ago, ICE Coffee is trading 27.65% lower.
