Coffee traded at 181.80, 0.41% up since previous day close. A sharp rally can be seen in Coffee prices as end of Chinese Lunar New Year holidays revived the trading liquidity in major agri-commodities. Improving Covid-19 situation in China & controlled inflationary rate further pushed up the commodity prices. Globally, the mixed USD ahead of the U.S FOMC meeting which may showcase a smaller rate hike decision strengthened the Brazilian Real (BRL) currency which fetches higher profits to Brazilian farmers while exporting the Coffee beans to U.S. The changing weather conditions in Brazil turned up slightly unfavorable for Coffee output which led an increase in prices. Buying on corrective dip may be recommended for the day in Coffee.

Natural Gas is trading at $2.767, 0.06% up since previous close. The slight recovery can be seen in Natural gas prices after tumbling down to lower levels of $2.60 levels; last seen in the year 2020. The changes in European regions & U.S may affect the consumption demand of heating fuels; further making commodities more vulnerable. Last week, the U.S EIA report showed a fall in Natural gas inventories by 91B from 82B in the previous week. The fall in Oil prices makes its substitutes like Natural gas less expensive as well. The result of multiple global events will remain into focus for the week. As seen in the chart, the Natural gas crossed down the major support level of MA (200) & is hovering near previous lows. Wait & watch strategy may be suggested for the day.