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.

The iPath Pure Beta Coffee ETN (NYSEArca: CAFE) is another exchange traded note covering the commodity.

However, these ETNs are based on coffee futures, not the spot price, so they can be hurt by so-called contango.

iPath Dow Jones-UBS Coffee ETN

The opinions and forecasts expressed herein are solely those of John Spence, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.