Porto Alegre, December 28, 2020 - The New York Commodities Exchange (Ice Futures US) for Arabica coffee ended Monday's operations with markedly lower prices.
With a reduced interest in this shorter week and festivities between Christmas and New Year, the Arabica in NY ended in negative ground against the dollar and technical factors. The dollar's rise against the real, being firm against other currencies, also pushed down prices in arabica.
The rise of the American currency against the real represents even greater competitiveness for Brazilian exports, which are on track to close 2020 with a record. So far in December, shipments of green coffee from Brazil alone have already reached 3.783 million bags, according to data from Secex (Secretariat of Foreign Trade), and should end the month above 4 million bags.
Indications of rainy weather over coffee regions in Brazil also represent a bearish aspect. Moisture is favorable to the development of grains for the 2021 harvest, mitigating the problem of water deficit in regions affected by drought throughout 2020.
Contracts with delivery in March / 2021 closed the day at 123.35 cents per pound, with a devaluation of 2.60 cents, or 2.1%. The May / 2021 position closed at 125.30 cents, down 2.55 cents, or 2.0%.
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