Coffee Traders' Forum - A Discussion about Coffee Futures Trading
Coffee Traders Discussion Forum
In a rising $ market it is advantageous for a Brazilian producer to sell in $ and exchange the same into Real. If producers are willing to part with their coffee, it should add pressure to the market. If the Real is strong the impact on coffee is not as meaningful. However, either situations may attract investment buying or selling. It doesn’t appear that today’s Real activity is impacting the market at all. I think that the more sophisticated producers will sell in $. Maybe someone closer to the physical market can provide a better explanation.