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
