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
European markets were closed today on Easter holiday.
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