Brazilian Real Suppressing The Price of Arabica Coffee

The price of arabica coffee futures on the commodity exchange ICE Futures New Yorkat the close of trade Thursday morning (11/02) closed down. The drop in the price ofarabica coffee triggered a weakening of the Brazilian Real eye and weak demand.

At the close of yesterday's trading currencies, the currency Brazilian Real down 1.12% at 3.9254. The decline in Brazilian Real also sparked speculation that producers would sell goods denominated in dollars to reap higher profit in local currencies. Weakcurrencies in countries producers tend to make coffee prices remain low in the near future.

Also with the holiday of Ash Wednesday in Brazil and also the lunar new year in China, then make a request declining coffee and coffee trading businesses also are in lowtrading.

Arabica coffee futures price for the most active contract July 2016 closed down at position 1.1880 dollar, down by-0.05 cent or equivalent-0.04 percent.

We estimated that the price movement of Arabica coffeefutures on the ICE Futures New York on the next trade is still potentially strengthenedby the existence of The Fed Chairman's comments by Janet Yellen, indicating a rise inU.S. interest rates further still take a long time, so that pressing the u.s. dollar.

Arabica coffee futures prices on ICE Futures New York can potentially test the Resistance level at the position of 1.2180 dollars and 1.2480 dollars. While the Support level will be at hand in case of a price reduction is on the position of 1.1580 dollars and 1.1280 dollars.