Risk-off mood drags the Coffee future 1% lower

Published: May 27 2023, 07:10 GMT+0

Risk-off mood drags the Coffee future 1% lower

A quick look at yesterday: Coffee stumbles 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%.

While price action maintains a negative bias, United States Core PCE Price Index (MoM) (Apr) came out at 0.4, while a consensus of analysts was expecting 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.

The Coffee future's value drop coincided with the fact that after ending yesterday's session at $3,017, Cocoa lost $17 and is trading around $3,000.

Though ICE Coffee has been dropping, other Softs have been performing better: Sugar is trading around $25.41 after ending yesterday's session at $24.83 (up 2.34% today). Cotton added 4.39% and closed around $80.12 yesterday.

The commodity has been trending lower for about a month. After hitting an important low of $151.1 approximately 4 months ago, Coffee has bounced back 20.91% since.