Coffee ETNs Rally May Subside

Coffee exchange-traded notes that track the price movements of coffee saw solid inflows in August on strong consumer interest, but coffee prices are already falling.

Coffee exchange-traded notes that track the price movements of coffee saw solid inflows in August on strong consumer interest, but coffee prices are already falling, ETF Trends reports. The IPath Dow Jones-UBS Coffee ETN and the IPath Pure Beta Coffee ETN rose 182% and 14.7% over the last month, respectively. The Dow Jones ETN has been trading above its 50-day and 200-day moving averages since mid-August. According to Rabobank analysts, there are concerns that the high price levels may tail off as the price rise was too sharp and too quick.

Click here for the story from ETF Trends.