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Barchart
Barchart
Rich Asplund

Coffee Prices Rebound as Brazilian Real Strength Fuels Short Covering

May arabica coffee (KCK26) on Tuesday closed up +7.45 (+2.68%), and May ICE robusta coffee (RMK26) closed up +80 (+2.25%).

Coffee prices recovered from early losses on Tuesday and rallied sharply, with arabica rebounding from a 15-month low.  Strength in the Brazilian real on Tuesday has sparked short-covering in coffee futures, with the real (^USDBRL) up +0.31% and just below Monday's 1.75-year high against the dollar.  The stronger real discourages export sales from Brazil's coffee producers.

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