COFFEE is trading at $187.35, 0.06% up since previous close. The recovery can be seen in Coffee prices since last few sessions against the mixed USD as market waits for the result of U.S CPI data which is to be issued on Wednesday; for this may widely affect the Brazilian Real (BRL) currency & Coffee prices as well. Last week, the FOMC hiked an interest rate by 25 bps & hinted for pause in monetary tightening in next meet which pushed up the Coffee prices as Brazilian farms may fetch higher profits while exporting the beans to U.S. The risk of lesser supplies from Colombia due to the changing climatic conditions made the Coffee expensive; for Colombia is the world’s second largest bean producer. Buying on dips may be recommended for the day in Coffee.

Natural Gas is trading at $2.193, 0.18% up since previous day close. A moderate recovery can be seen in Natural gas prices from its major support level of previous lows at $2.00 levels. Last week, the U.S Energy Information administration (EIA) report showed a rise in Natural gas storage levels of 54B higher than expectation 51B. This led slight selling pressure earlier. Earlier, the U.S released in-line result as expectation wherein the inventory level rose to 79B from 75B in the previous week. The changing weather conditions in European & US regions affects the consumption demand of heating fuel like Natural gas. As seen in the chart, the commodity is firmly trading above the major support level & hence, buying on lower levels may be recommended for the day.