Coffee prices hits two month peak

Arabica futures in New York ended with sizeable gains as a stronger Brazilian currency lifted values.

March arabica coffee was up 0.25 cents, or 0.2 percent, at $1.0615 per lb.

It earlier touched $1.0700, its highest since Nov. 30, boosted by follow-through buying, dealers said.

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Prices rose sharply on Thursday in step with the Brazilian real currency, which jumped to a three-month high on market optimism over pension reforms promised by President Jair Bolsonaro’s new government.

A stronger real is supportive because it reduces local returns on dollar-traded commodities like coffee and sugar, discouraging producers from selling their supplies.

March robusta coffee was up $10, or 0.6 percent, at $1,561 a tonne on thin volumes.

Prices earlier hit $1,592 per tonne, their highest since Dec. 3, as speculators tested resistance in thin trade. However, buying waned soon after.

Dealers said trade had slowed as top grower Vietnam readies for the Lunar New Year holiday next week.

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Source: Business Recorder

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