Arabica Coffee futures received strong support today mainly due to a weak dollar in
international markets, following the ECB’s announcement of the economic stimulus
package for the European Union. The most active contract for March delivery gained
440 points, settling at 124.85 cents per pound. Volume, however, did not follow price
action, remaining modest at 24,888 lots, including 2,671 switches. The dollar fell sharply
against the euro, after the ECB decreased rates to -0.3%, however markets expected a
deeper cut. In Brazil, the real recovered significantly, trading 800 points higher at 3:00
pm EST at BRL3.7550. The possibility that the Brazilian Central Bank lifts interest rates
contributed to the real’s recovery as well.
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