On Thursday, 19th May, 2016, Coffee contracts were down when major coffee growing Brazil’s high record crop increased on values. Current market activities were not appealing to coffee due to speculations that the US Federal Reserve intends to raise interest rates in June.
The appreciation of the US Dollar was worrisome to other world currencies including the Brazilian real, but is an encouragement to Brazilian selling producers.
The USA’s Intercontinental Exchange predicted that coffee futures contract prices for 19th May, 2016 in the contract month of July, 2016 to be US$123.95 per pound as compared to its previous close at US$130.10. The closing price for the contract month of September will be at US$125.90 per pound as compared to US$132.50 of it previous closing price. Both contract months July and September have a daily change of - 6.15 per pound. The month of July will have a percentage daily change of -4.727% while to the month of September’s - 4.657%. The month of July 2016 will have a daily high price of US$129.00 with a daily low price of 123.70 while the daily high price of September 2016 will have a daily high price of US130.90 with a daily low price of 125.50.
Source: MITC, 20th May, 2016.