Coffee Futures End Higher after Three-Day Fall by FC Stone

Arabica  Coffee  futures  closed  higher  on  Wednesday  after  a  three  day  consecutive  fall.  The
most  active  contract  for  December  delivery  traded  23,934  lots,  and  reached  a  new  low  of
114.75, closing at 116.20 cents per pound. The Brazilian real continued its downfall, this time
reaching lows of 4.13 BRL due to continued uncertainty regarding Brazil’s ability to restructure
its  economy  and  control  its  credit  rating.  On  the  weather  front,  MDA  weather  services
reported increasing rains in Sao Paulo and Southern Minas Gerais next week, aiding in further
flowering,  however  areas  such  as  Northern  Minas  Gerais,  Espirito  Santo,  and  Bahia  are
expected to have lower than average rainfall. Despite the fall of crude oil, the equity markets,
and the Brazilian real, coffee futures were able to finish with a 75 point gain.