COFFEE traded at $150.42, 0.02% up since previous close. The range bound trading can be seen in Coffee prices since last two sessions as demand & supply ratio seems to be remaining constant. The weak global sentiments amid Chinese PBoC’s dissatisfying move of cutting down key rates lower than expectation led to slight selling bias in major commodities. Last week, the strong USD on an account of hawkish Fed Minutes turned out to be weaker for Brazilian Real (BRL) currency & hence, weakens the Coffee prices; since this may affect the profit fetched by Brazilian farmers while exporting the beans to U.S.  As seen in the chart, the Coffee is hovering near previous lows & hence, the cautious trading may be recommended for the day.

COPPER traded at $8363 .3, 0.21% up since previous close. AN upward momentum can be seen in copper prices on Tuesday as markets seems to be digesting the negative effect of China’s monetary decision. The Chinese PBoC cut-down its key rates lower than expectations which signaled for slow-down in economic conditions & this may limit down the consumption demand of copper since China is a major consumer of base metals. Last week, the strong USD as Fed Minutes hinted more hawkish approach towards future monetary policy turned out to be negative for base metals. Ongoing stimulus talks in China will remain significant for copper prices. As seen in the chart, the Copper took a support of previous lows & crossed over MA (10) which indicates further buying bias for the day.