Arabica coffee futures closed modestly higher due to book squaring ahead of the end of the year. Weakness of the dollar contributed to the up movement. The most active contract for March delivery settled 195 points higher at 135.45 cents per pound. The speculative buying boosted prices at mid-session to post gains of 4.85 cents to a high of 138.35 cents. The dollar declined today after trading at a 14-year-high as investors rebalanced portfolios for the end of the year. The dollar index fell 0.3% today but still is on track for a total year gains of 3.0%. The real was firm, trading at USDBRL3.2498 or 331 points stronger. In related news, according with World Weather Inc., dry weather in the States of Bahia and Espiritu Santos in the past week and for the next two raised yield concerns. Rain fall average in the last seven days was 2mm in Bahia and 6mm in Espirito Santo. Meanwhile, the Brazilian meteorology service SOMAR expects rains to return in the first week of January.
London Market- Robusta drives $40 higher amid book squaring in front of year end and Jan17 first notice day.
Overnight offers out of Asia encouraged values to drop $8 off the opening bell through light volume. However, the early pressure subsided rapidly, leaving the short term speculative shorts dealing with stale positions. An initial wave of short covering from this sector pushed march16 into resistance standing at $2090, where a second tranche of Vietnam selling was found. The market then observed a brief holding pattern before stops were triggered first through resistance then $2100, eventually touching an intra- day high $2125. These levels attracted arbitrage related selling into Robusta which cooled the upside and prompted levels to set back $10 into closure.
Please note Robusta will close tomorrow at 12:23 pm U.K. time.
Write something about yourself. No need to be fancy, just an overview.