Coffee futures are testing $1.27 toward the end of the trading week, allowing the agricultural commodity to pare its loss in 2020. The coronavirus pandemic impacted the coffee market, with more consumers staying home to drink their morning beverage, which was not enough to spur growth since the industry relies on coffee houses and restaurants for consumption.

March coffee futures rose $0.003, or 0.24%, to $1.269 per pound at 17:25 GMT on Thursday on the US ICE Futures exchange. Coffee prices are poised for a weekly spike of more than 4%, lowering their year-to-date slump to below 2%.

Industry observers note that technical indicators and data triggered bullish optimism in coffee markets, potentially letting prices test $1.30 by year’s end.

For now, all eyes will be on Brazil, the world’s top coffee grower. The Brazilian real has strengthened over the last month, reducing producer sales by making dollar-pegged prices more expensive in local currency terms. Despite being one of the worst-performing currencies in forex markets, cratering 26% year-to-date, the real has risen nearly 5% over the last month.

Moreover, Brazil is anticipated to witness a drop in coffee output next year, a trend that would allow demand to catch up. In addition to foreign exchange markets, weather woes could contribute to weaker crops as important growing regions face droughts.

Overall, coffee could join the broader commodities boom in 2021 amid rising demand, a weaker US dollar, and disrupted global supply chains. Plus, major economies are likely to witness some semblance of normalcy as more jurisdictions roll out the coronavirus vaccines, giving businesses the confidence to reopen and consumers the opportunity to patronize stores in person.

In other agricultural commodities, January corn futures tacked on $0.0425, or 0.99%, to $4.315 per pound. January wheat futures picked up $0.0725, or 1.21%, to $6.0575 a bushel. January soybean futures soared $0.155, or 1.31%, to $11.9925 per bushel.