Arabica coffee futures rallied Monday on speculative short covering. The most active contract for
December delivery climbed 365 points to close at 120.20 cents a pound. A large non-commercial net
short position that have been accumulated during the recent weeks and lack of follow-through on the
latest price action, triggered the short covering. A recovery of the currencies added support to the
prices. The real bounced after the announcement of a USD$14.6 billion fiscal austerity package. The
real traded a BRL3.8083, 620 points better at 4:00 pm EST. Markets in general were quiet ahead of the
Federal Reserve decision on Thursday.
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