DJ Weak Brazilian Real Knocks Coffee Prices Lower — Market Talk

A weakening of the Brazilian real is putting pressure on coffee prices, according to FC
Stone. A rocky economic picture for Brazil, amid a long-running political scandal, is putting
pressure on the Brazilian currency — even after expectations that President Dilma Rousseff could
face impeachment gave the currency a boost against the dollar over March.

Because Brazil is the
world\’s largest producer overall, the coffee market tends to closely track the strength of the real
against the dollar. On Tuesday, the real is down 0.34% against a broadly fimer dollar, and both
Robusta and Arabica are trading lower.