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May 27, 2023Yesterday at a glance: Coffee slides down 1% to close at $180.85 per pound yesterday.
Core Durable Goods Orders in United States fell short of market expectations (0%) with a reading of -0.2%, continuing the decline from the previous figure of 0.3%.
Amid the market gloom, United States Core PCE Price Index (MoM) (Apr) released yesterday at 12:30 UTC with a figure of 0.4, while the previous figure was 0.3. United States CFTC Crude Oil speculative net positions released yesterday at 20:30 UTC with a figure of 193,100, while the previous figure was 191,500.
Trend-following investors 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. Asset volatility analysis shows that the Coffee future's lower Bollinger Band® is at $180.43, 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 Coffee will remain range-bound for the immediate future.
Coffee's value drop coincided with the fact that Cocoa lost 0.56% yesterday and closed at $3,017.
Positive performances can be seen by looking at other Softs markets as Sugar is trading around $25.41 after ending yesterday's session at $24.83 (up 2.34% today). Cotton went up by 4.39% yesterday, and closed at $83.64.
The commodity has been trending lower for about a month. 4 months ago, Coffee fell to a low of $151.1 but has since recovered 20.91%.
