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Two floor price of coffee futures rose sharply, why?

US Federal Reserve System (Fed), which acts as a federal state bank, recently decided not to raise interest rates. Currently interest rates are at 0-0.25%. But the US economy was in recession, but not be called sustainable as being against the waves, the stimulus program and currency wars, countries devalue their currencies to stimulate export ... that dollar index fell sharply yesterday (see chart).

chi so usd
The dollar index fell sharply 18-3-2015 (source: tradingchart.com)

That is also the reason for the floor price of goods and stock prices rose sharply due to celebrate, including coffee.

When the dollar index fell, CRB commodity basket index rose 1.5%. The speculators jumped into the cargo floor to pull over so buy cheap dollar, from floor maturity of corn and wheat to soybeans. Cocoa prices down to sacrifice for coffee. Both floors of coffee increased by speculation a few days ago has now acquired a strong seller.

Comment: The two-floor coffee rose yesterday 18-3 is a direct result of the weak dollar, the strong recovery of the Brazilian real, but no relation to supply and demand.

On the supply side and demand, firms Neumann raise alarm output is estimated to 45.3 million bags in Brazil than 45 million of them before. Based on this estimate to the table, the price will not make up only around from neutral to weak.

Coffee prices are rising again or not? This is at the present time depends on the breath of the dollar index and technical factors rather than supply and demand.



Hophuongcoffee
Source giacaphe.com