Arabica coffee futures on ICE rose to a three-month high on Wednesday, buoyed by supportive technicals and a lack of selling by producers.
March Arabica coffee settled up 1.95 cents, or 1.6%, at $1.266 per lb after climbing to a three-month peak of $1.2860 earlier in the session.
Dealers said technical indicators were mostly bullish after the market’s recent improved performance.
“We expect futures to push higher in the near term but remain below the key resistance at $1.30,” Sucden Financial said in a technical note on Wednesday.
The market has also been given a boost this week by a strengthening Brazilian real, which curbs producer sales by making dollar-denominated prices less attractive in local currency terms.
The prospect of a significant decline in production in top producer Brazil in 2021 provided background support.
March robusta coffee settled up $6, or 0.4%, at $1,378 a tonne.