COFFEE is trading at $201.35, 0.26% up since previous close. A sharp rally can be seen in Coffee prices on Tuesday; making a close above $200 levels with heavy trading volume. Majorly, the threat over lesser supplies from Colombia because of changes in climatic conditions made the Coffee expensive; for Colombia is the world’s second-largest bean producer. Also, the China showed improvement in its GDP rate which turned out to be positive for agri-commodities. The mixed USD amid suspicious chance of Fed higher interest rate hike decision may affect the Brazilian Real (BRL) currency vis-à-vis Coffee prices. As seen in the chart, the Coffee is expected to test an upper trend-line of bullish channel pattern & hence, any dip in the commodity is considered to be a buying opportunity.

SOYBEAN is trading at $1515.03, 0.06% up since previous day close. The slight profit-booking can be seen in Soybean prices on Wednesday after rallying up to $1530 levels earlier in this week. An increasing demand against the slowing supplies led this upside in Soybean. The weekly USDA estimates shows a drop-down in supplies & exports for the week which pushed up the prices. The change in climatic conditions in Argentina from normal weather affects the Soybean output & supplies & hence, made the commodity expensive again. Globally, the mixed USD amid mixed chances of interest rate hike in Fed’s meet remains vital for Soybean. Buying on corrective dip may be recommended for the day in Soybean.