COFFEE traded at $164.38, 0.41% down since previous close. The downward momentum continued to be seen in Coffee prices since last few sessions & the commodity is expected to open on lower side today as well. The rise in supplies against the steady demand across the globe subdued the prices. The change in climatic conditions in Brazil turning favorable for Coffee production & supplies dragged down the prices since Brazil is a top producer of beans. Globally, the hawkish BoE rate hike stance & Fed’s hint over smaller interest rate hike in this year made the global commodities weaker. As seen in the chart, the Coffee is trading near the previous lows of $164 levels which acts as major support & hence, the cautious trading may be recommended for the day.

COPPER traded at $8367.3, 0.06% down since previous close. The slowing demand from China and other countries led the commodities to trade slightly weaker. On global front, the Fed’s hawkish monetary policy stance in future course of time & political instability in Russia made the metals to trade on lower side. Last week, the China’s PBoC cuts down its Prime lending Rate (PLR) by 10bps lower than expected rate cut by 15bps which may affect the demand of Copper since China is a major consumer of base metals. As seen in the chart, the Copper is trading not only crossed down short-term Moving Averages of period 10 & 20 but also long-term Moving Average of period 200. Slight selling bias may be suggested for the day in copper.