Exchange traded products indexed to coffee prices have enjoyed an oversold bounce the past two weeks after sentiment on the beaten-down commodity dropped to multiyear lows.
Last month, coffee prices hit key support levels on extremely bearish sentiment, setting up the potential for a strong countertrend rally. [Coffee ETNs May be Due for a Bounce]
The iPath Dow Jones-UBS Coffee ETN (NYSEArca: JO) is up 15% from the June 18 low.
The exchange traded note has climbed above its 50-day simple moving average for the first time since January.