"C" Coffee Futures Settle Higher by FC Stone

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.