ICE Coffee Futures Bounce on Speculative Buying FC Stone

The ICE Arabica Coffee Market in New York recuperated today aided by strong valuation of the main producing
countries’ currencies. The December delivery contract gained 145 points, settling at 120.25 cents per pound.
Volume increased to 31,999 lots, helped by the rollover. The December-March switch settled at -3.30, without
much change. Prices were pressured upon market opening, following the rainfall report published by SOMAR,
the  Brazilian  Meteorology  Agency;  however  upon  lack  of  follow  through  below  yesterday’s  low,  speculators began covering their positions. The Brazilian real recovered today, gaining over 2.5% or 1,000 points during the session. A wave of mergers and acquisitions supported the currency. The Colombian Peso also strengthened 3.3%,  following  the  central  bank’s  decision  to  increase  the  discount  rate  0.50  on  Friday  night.  The  market anticipated an increase of 0.25.