Coffee futures dropped on pressure created by Brazil’s better weather forecast for next few weeks.
Coffee futures were on rise due to speculation of dryness in Brazil. Arabica Futures rallied to a five-week high earlier this week.
MDA,An Weather agency said – rains are expected to return to west central and south central areas next week, which should begin to replenish moisture .This is good news for many coffee growing areas (indeed, Minas Gerais, Brazil’s top coffee growing state).[irp]
On Tuesday end, New York arabica coffee futures dropped by 3.6% to 135.35 cents a pound, But managed to stay above their 100-day moving average, at 135.17 cents a pound.
November robusta coffee rose $22, or 1.1 percent, at $2,005 a tonne.