Arabica coffee futures extended drop Monday, as weather analysts continued to forecast that
rains will be returning to the main coffee growing regions of Brazil by the end of the
week. The most active contract for December delivery fell 195 points to 123.90 cents a
pound. Isolated and scattered showers are expected Wednesday, and they may increase later
this week, with good coverage. The real recovered modestly, trading at BRL3.8851 at 3:30 pm
EST. Lack of news and slow day, prompted buying of the currency in speculation that the
finance minister Levi will continue. The volume decreased to 27,894 lots, including 6,395
switches. The active December –March switch widened 10 points to end at -3.40 cents. The
recent weakening of the switch had pushed away buying interest .
Margin requirement increases tomorrow to $3,000 USD per lot.
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