ICE Coffee Market Advances 5.6 per cent by FC Stone

The Arabica  coffee  market had a strong recovery on Thursday, as the recent  origin  selling diminished  significantly. The active contract for March delivery settled with 645 point gains at 122.50 cents per pound. Volume dwindled to 29,707 lots, due to low turnover in the switches. As it is common after first notice day, lack of origin selling allowed prices to rise more easily. Latin American currencies recovery supported prices as well. The Brazilian real traded at BRL 3.7179 or 489 points higher at 3:00 pm EST, COP3,093.79 or 98 higher, and the MEXP16.61, 11 cents higher also. On weather news, reports of fruitful  rains  with  good  coverage  continue  in  the  main  producing  regions  in  Brazil.  However,  reports  have  circled  on
possible reduction of Espirito Santo’s harvest, which could drop 30 or 40 per cent according to some analysts. The state of Espirito  Santo  produces  mainly  Conillon.  On  yesterday’s  note,  speculators  followed  the  price  behavior  against  the  115 support for March. With a fundamental situation still undefined regarding supply and demand, reaching the lows of 2008 and 2013 suggests caution for speculators with short positions, who have enjoyed a long slide in prices.
 
The USDA Attache report pegs the 2015/16 Brazil harvest at 49.5 million bags, 9% less than the estimate from last season.
The USDA Attache report pegs the 2015/16 Colombian harvest at 13.33 million bags, 9.9% higher than the estimate from
last season.