Arabica coffee futures extended gains Friday but retraced from highs posted early. The
contract with most of the activity, March settled 200 points higher at 124.40 cents a
pound. The market rallied after the opening on speculative buying, helped by the USDA report
of the Brazilian crop. Prices reversed during the last hour of trading, as speculative profit
taking capped the advance. The 2015-16 production was pegged by the USDA at 49.4 m 60
kilo bags, 9 percent lower than the 2014-15 crop. The report was published yesterday after the
market close. The BM&F in Sao Paulo was closed today. During the week, Arabica prices
gained 7.42 per cent or $0.0860 per pound. Reduced origin sales after the FND and good
support on the March chart under the 115 level facilitated the up move. Despite good rains
had started to develop in the main areas of Brazil; concerns remained about the Conillon crop
in the State of Espiritu Santo. USA GCA stock fell 168,880 bags to total 5,948,228 bags in
October. The average drop of the last five years is 176,000 bags. The BRL and the COP
remained steady at BRL3.7200 and COP3,070.
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