Arabica coffee futures pared the recent fall Friday to end a little higher. The active contract for March delivery settled 90 points higher at 145.80 cents a pound. Activity was mainly generated by short term specs playing both sides of the market. Volume reached 37,177 lots, including 5,548 switches. During the week, Arabica prices fell 10.0 cents or 6.6%. Producer selling was encouraged in Brazil by the weakness of the currency. The economic and politic crisis in Brazil pushed again the real that lost 1.6% during the week, and accumulated 10.4 % drop since the peak on Oct 25.
London Market- London maintained its recent behaviour as the secondary market to New York with values driving higher as a response to corrective action in the ‘C’ contract.
A $13 fall off the opening bell was a result of significant weakness in the Brazilian Real after hours yesterday evening, drawing early spec shorts to the market. Good volumes of industry buying and a recovery in New York halted additional downside momentum as values looked to break back above $2000. Fresh intra-day buying became apparent as psychological resistance was broken, propelling March to the 50 day moving average at $2036 which remains a significant technical level heading into next week.
Much of the day’s volume was generated through the Jan/March switch, strengthening to $23 premium as spec short positions looked to cover positions established after November’s final tender day.
Write something about yourself. No need to be fancy, just an overview.