Coffee traded at 160.80, 0.31% up since previous day close. A sharp rally can be seen in Coffee prices on Tuesday after retaining the demand against the steady supplies. The soft USD & strong EURO amid contrarian interest rate moves in their respective meetings strengthened Brazilian Real (BRL) currency which fetches higher profits to Brazilian farmers while exporting the beans to U.S. The changes in weather conditions in Brazil turned up unfavorable for Coffee output which led an increase in prices. Earlier, the commodity slid down to two-year lows of $150 last week as demand lowered down from China due to Covid-19 restrictions & inflationary pressure across the globe. Buying on corrections may be recommended for the day in the commodity.

Natural Gas is trading at $3.015, 0.21% down since previous close. The sell-off continued to be seen in Natural Gas on account of slowing demand against the rising supplies. Last week, the U.S Energy Information Administration (EIA) showed a massive fall in Natural gas inventory level by 82B against the previous week’s built-up of 11B. However, the focus will be upcoming release of U.S EIA report on Thursday with a hope of further drop-down in storage level. The changes in European regions & U.S may affect the demand of heating fuels; further making commodities more vulnerable. As seen in the chart, the Natural gas is almost crossed down the major support level of MA (200). Slight selling pressure may be suggested for the day in Natural gas.