ICE Coffee Futures Rally on Brazilian Crop Revision by FC Stone

Arabica coffee futures rallied Tuesday  after the last revision of the 2015-16 Brazilian crop was reduced to 42.1million by CONAB, the government agency.   The position with most of the activity for December delivery gained 170 points to settle at 120.85 cents. Volume increased to 25,407 lots, including 5,367 switches. In the third and last report for the 2015-16 crop, CONAB decreased the crop by 2.1 million to 42.1 million. The Arabica crop is now estimated at 31.3 million from 32.9 million, and the Conillon estimate decreased by 0.4 million to 11.3 million  from  the  May  estimate.  The  weakness  of  the  dollar  against  emerging  markets  currencies  also contributed  to  support  the  coffee  prices,  particularly  the  recovery  of  the  real,  that  advanced  1.0  percent, trading  at  BRL4.0480  at  2:15  pm  EST  upon  news  of  a  shrinking  government  deficit  for  August  to  1.3  billion dollars, and continued support of the central bank in Brazil. In other related news, Colombian FNC’s manager,Luis  Samper,  warned  of  the  recent  dry  spell  in  northern  and  southern  regions  may  reduce  size  of  beans,reported Bloomberg.