Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
Regarding the exchange rate.. is it just virtual futures thing or does it impact also physicals?
As for physicals I think sell/export contracts are made in USD somewhere in Brazil, right?
So who benefits from that is the trader, assuming that farmer gets paid in Real more or less regardless what the USD rate is.
I understand that buyer would argue that price should reflect it, but seller never gets it back when currency appreciates..
In business that I know, exchange rate fluctuation is usually done based on long term E.g. yearly basis and according to year average or so.
I do not quite get why always when USD ticks a little bit higher USD price goes down so much, but almost never goes up the same way when local currency strengthens.. or is it just my impression?