ICE Arabica Coffee Prices Climb on Weekend, Poised for Weekly Gain

Yesterday's closing currency trading Brazilian Real strengthened against the US dollar. USD/BRL currency pair ended down -1.03 per cent at 32045.

The strengthening Brazilian Real is bullish sentiment for commodity prices in US dollars, making exports less attractive in local currency terms. Brazil is the world's leading producer of both sugar and coffee.

See: Prices of Arabica Coffee Rebound 2.4 Percent Supported by the Weakening of US Dollar

Arabica futures prices on last Saturday morning's close strengthened. The December 2016 Arabica coffee futures price rose by 0.15 US dollars or 0.11 percent and closed at 1.4160 US dollars per pound.

On a weekly basis, arabica coffee prices still rose 0.89 percent. The weakening of the US dollar is a bullish sentiment that beats the sentiment of the weakening of the Brazilian Real and the increase in the arabica coffee harvest.

Analysts at the Vibiz Research Center estimate that arabica futures prices for the next trade have the potential to weaken with the potential strengthening of the US dollar.

Arabica coffee futures prices on the ICE Futures New York have the potential to test the support level at 1,3800 US dollars and 1,3500 US dollars. Meanwhile, the resistance level that will be faced if there is a strengthening is at the position of 1,4500 US dollars and 1,4800 US dollars.