Arabica Coffee futures settled higher on Wednesday, helped mainly by external factors. The most active contract for March delivery settled with gains of 160 points at 126.80 cents per pound. Activity was modest, with volume reaching only 15,015 lots, including 1,744 switches. The most active switch, between March and May, remained firm at -2.15 cents. The behavior of this switch tends to attract strong speculative participation before first delivery day, due to its volatility and wide trading range. The dollar fell for the first time in four days due to the low production levels of commodities, helping emerging market currencies. The Brazilian real led the advance against the US dollar, recuperating to its highest level since November 25. The real traded at BRL 3.7475 at 2:00 pm EST, gaining 525 points, while the Colombian peso recuperated 280 points, from its historic lows, trading at COP 3,280.50 at the same time. The real was also supported by investors betting on that impeachment of Rousseff will gain support. Speculative buying in the coffee market was also propelled by technical behavior. A slight upward trend in prices, developed over the past few weeks, warns of a possible movement against the highs of October 19 th of 129.50, followed by 135.50. Oscillators, however, remain with low momentum.
The cooperative in Brazil Cooxupe estimates an increase of 20% in production for 2016.