Wednesday 21 February 2024

Coffee futures in New York rally to 3-week highs on fund short covering

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MILAN – Arabica coffee futures in New York rallied for a second day on Tuesday and posted 3-week highs as strength in the Brazilian real against the dollar over the past week has fuelled fund short covering in coffee futures. A stronger real discourages export selling by Brazil’s coffee producers.

The most active contract for September delivery settled 445 points higher to 107.45 cents. Prices rose a whopping 6.8% during between Monday and Tuesday reaching their highest levels since June 4th.

September Robusta coffee in London was up $32, or 2.25%, at $1,455 a tonne.

Initial origin scale selling was countered by non-commercial short covering and system backed buying.

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