On Thursday, Arabica coffee futures for December delivery opened with upward
momentum reaching a high of 122.45. However upon news of Brazilian lawmakers
approving amendments to a bill increasing government spending, the Real weakened,
putting downward pressure on coffee prices until reaching a low of 119.10. The
Brazilian real traded at BRL3.9940 at 3:02 pm EST. December delivery coffee futures
managed to close at 120.75 cents per pound, down 60 points from yesterday’s close.
Open interest fell yesterday by 283 lots for a total of 194,192 lots, suggesting some
short covering in yesterday’s price action. Total volume reached 17,603 lots, with 5,367
switches. In weather news, SOMAR reported significant rainfall for Parana and southern
Sao Paulo and only scattered rainfall for other areas of Sao Paulo , Cerrado and
Southern Minas Gerais.
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