Arabica coffee futures closed higher Monday helped by news
from Brazil. The active contract for May delivery settled 125 points higher at 138.40 cents a pound. The market had a brief rally early in the morning after buy stops were triggered above the 140.00 level for the May contract. News indicating that the in the meeting in Brazil last Thursday, the proposal of raising the minimum reference price was rejected for the moment, supported the prices. The inter-ministry committee approved an extension of the loan repayment until June 6. Traders were anticipating selling from Brazil that has been delayed lately as producers hope for possible subsidies. A stronger real in Brazil, also contributed to dissuade coffee sales. The real ended at BRL2.0183 from BRL2.0202 last Thursday. Traders are anticipating a raise of the interest rates in the next meeting of the Monetary Council on April 16 and 17. SOMAR, a Brazilian weather agency, reported heavy rains in the coffee growing areas, which could affect the crop if it continues at its present damaging pace. European markets were closed today on Easter holiday.
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