Arabica Coffe Futures Close Down Significantly

The price of arabica coffee futures on the commodity exchange ICE Futures New Yorkat the close of trade Tuesday morning (05/01) closed down significantly. The drop in the price of arabica coffee triggered a weakening of the Brazilian Real eyes.

Brazil's Real currency down 2.7% after a survey of the Economist weekly revealed that THEIR GDP in Brazil is expected to contract more than 3% this year. This encouragesthe sale of both sugar and coffee futures, which are sensitive to currency moves raised in Brazil, the world's largest manufacturer of both commodities.

The decline in Brazilian Real also sparked speculation that producers would sell their dollars in the currency to reap higher profit in local currencies. Weak currencies in countries producers tend to make coffee prices remain low in the near future. Read about :Cocoa Prices Under Pressure

Arabica coffee futures price for the most active contract in March 2016 closed down at position 1.2390 dollar, down by-2.80 cents or equivalent-2.21 per cent.

Arabica coffee futures prices on ICE Futures New York the potential to test the support level at the position of 1.2100 dollars and 1.1800 dollars. While the resistance level that will be encountered if an increase is on position of 1.2700 dollars and 1.3000 dollars.