COFFEE traded at $157.32, 0.22% down since previous close. The downward momentum can be seen in Coffee prices since last two sessions amid mild changes in demand & supply ratio. However, the commodity is expected to open on higher side on Thursday on account of soft USD & strong Brazilian Real (BRL) currency as U.S CPI rose by just by 0.2% lower than 0.3% as expected; for Brazilian farmers may fetch higher profits while exporting beans to U.S. The rising U.S-China tensions & the change in climatic conditions in Brazil remains vital for prices since Brazil is a top producer of beans. As seen in the daily chart, the commodity reversed down from Fibo level 23.6 & hence, the cautious trading may be recommended for the day.

COPPER traded at $8511.3, 0.14% up since previous close. An upside can be seen in copper prices as China is planning to infuse stimulus package to Beijing in order to boost up the economic conditions & hence, this may increase the demand of Copper since China is a major consumer of base metals. On global front, the U.S issued softer inflation rate with a rise of 0.2% lower than expectation 0.3% which indicates controlled inflationary pressure. This weakened the USD & cushioned the base metals since they share indirect correlation. Last week, escalating tension between U.S & China as the latter imposes curbs on exports of chipmaking materials to U.S plunged down the Copper prices established further. Buying on lower levels may be recommended for the day in copper.