Arabica coffee futures fell Friday pressured by a weak technical performance. The most active
contract for March delivery ended 195 points lower at 123.60 cents a pound. Activity was very light
with volume reaching only 11,844 lots. The spec action was prompted as prices were unable to exceed
recent highs of 126.60 at 125.85 for the March contract. The fall of other commodity markets
contributed to add weight on the coffee market. The gold fell to $1,051.10, the lowest level in five
years as the dollar continue to get stronger on speculation the FED will raise the rate at December
meeting. Crude oil fell $1.45 to $41.75 per barrel. During the week, Arabica prices paused the recent
advance, consolidating between 121 and 126 cents per pound. Rains in Brazil tended to normalize as
well. The Real remained weak, affected by economic and political concerns.
Leave a Reply.