Arabica coffee futures closed higher on Friday by 440 points at 122.70 cents per pound for the active
contract of December delivery. The market opened with a gap at 120.00 after the real recovered to
levels of BRL3.94 overnight, and trading at BRL 3.9644 at 1:30 pm EST, maintaining upside momentum
throughout the entire session, reaching highs of 123.35. From a technical standpoint, after the past
two days’ violent movements, a technical correction for the real was expected, moving coffee prices
along with it. In addition yesterday’s bullish candlestick formation of a lower low and higher close
compared to Wednesday’s and the cross of stochastic levels for the daily coffee chart suggested an
upward move, after holding such oversold levels for the past few weeks.