Coffee prices headed higher on Brazil dryness, currency moves

From www.brecorder.com

NEW YORK: Arabica coffee futures will rise 22 percent by the end of 2018 on concerns over dry weather in top grower Brazil and expectations for volatile moves in the country’s currency, a Reuters poll of 11 traders and analysts showed on Friday.

The survey’s median forecast for ICE spot arabica coffee futures prices at the end of 2018 was $1.30 per lb, up 21.8 percent from Thursday’s close.

The year-end price projection was down slightly from the consensus in Reuters’ February poll at $1.3443.

“We feel that once the Brazilian elections get closer, the Brazilian real should see a strong rally, thereby providing a strong bid for US-based arabica futures prices,” said Shawn Hackett, president of Hackett Financial Advisors in Florida.

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