Coffee Futures Reboud After Hitting New Lows by FC Stone

Arabica coffee futures reached a new low today of 114.55 cents per pound for the December
delivery contract, however it was able to close 210 points higher at 118.30 cents per pound.
The Brazilian real reached new lows too of BRL4.2421, yet recuperated throughout the day, on
positive  news  from  Brazil’s  central  bank    promising  to  support  the  currency,  trading  at
BRL4.0980 at 1:30pm EST. This positive movement for the real supported coffee prices, easing
the sell-off. Bloomberg reported the central bank of brazil believed it can more than offset the
weaker currency, allowing it to hold interest rates. This positive news reacted strongly in the
market, creating a steady up move in coffee prices towards the end of the session. In weather
related news, SOMAR reported a hot a dry air mass over the southeast region, and rains over
the weekend for Parana, Sao Paulo, but not yet Minas Gerais.