By Agency Safras - Lessandro Carvalho -May 18, 20218
Porto Alegre, May 18, 2021 - The New York Commodities Exchange (Ice Futures US) for Arabica coffee ended Tuesday's operations with markedly higher prices.
Prices soared on the day, breaking through resistance and again surpassing the important $ 1.50 a pound weight line. A number of aspects were behind the strong gains of this Tuesday, with emphasis on the apprehension with the dry climate in Brazil, with the stoppage of shipments in Colombia and for increases in other commodities, especially soft commodities, except for the juice of Orange.
According to SAFRAS & Mercado consultant , Gil Barabach, the rise in other commodities, with the commodity CRB index advancing, despite the fall in oil, and the fall in the dollar pulled coffee upwards, serving as an initial impetus for gains. "The intensity of the increase, on the other hand, is linked to protection against the dry climate in Brazil and to a technical impulse with the recovery of the 150 cent line", he pointed out.
Coffee expert at Terra Investimentos, Luiz Monteiro, pointed out that some stops were triggered and the market rose significantly with speculative and fund purchases that continue to monitor the strike in Colombia, as well as the evolution of the harvest and the climate in Brazil, in addition to the unfolding of the pandemic, especially in Europe. The release and end of restrictions that facilitate trade in countries lead the market to believe in increased consumption.
Contracts with delivery in July / 2021 closed the day at 152.80 cents per pound, with an appreciation of 7.05 cents, or 4.8%. The September / 2021 position closed at 154.75 cents, up 7.00 cents, or 4.7%.
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