Coffee futures price is reacting to currency dynamics

Coffee futures price is reacting to currency dynamics, as Brazil’s real strengthened 1.2% against the dollar. This trend may limit local producer sales, tightening near-term supply and sustaining price support above $2.30/lb. By 1773, coffee's weaker cousin, tea, was wildly popular in the colonies. However, when the Tea Act was passed, which kept in place a duty (tax) on tea imported to the colonies, American colonists became angry. They turned away British ships carrying tea headed for Philadelphia and New York. In Boston, however, the Governor wouldn’t allow the ships to be turned back, and the colonists would not allow the ships to unload, resulting in a stand-off. Eventually, colonists snuck onto the ships and dumped out the tea—what you and I call the Boston Tea Party. In an interview with Notícias Agrícolas, Fernando Maximiliano, an analyst at StoneX , discusses the possible developments in the coffee markets over the coming months. We summarise some of the salient points below. Coffee futures price climbed to $2.32/lb in early June trading, driven by tighter Brazilian supply and rising global demand. Analysts note the current price tests the 50-day moving average resistance, suggesting possible short-term volatility if rainfall patterns improve in key growing regions.