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Barchart
Barchart
Rich Asplund

Coffee Prices Follow the Brazilian Real Lower

March arabica coffee (KCH26) on Wednesday closed down -16.25 (-4.42%), and March ICE robusta coffee (RMH26) closed down -130 (-3.04%).

Coffee prices gave up an early advance on Wednesday and sold off sharply after the Brazilian real (^USDBRL) retreated from a 20-month high and turned lower, sparking long liquidation in coffee futures.  The weaker real encourages export sales by Brazil's coffee producers.  Arabica coffee initially climbed to a 2.5-week high on Wednesday, and robusta rose to a 1.75-month high before turning sharply lower.

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