The price of coffee is rising as stocks dwindle and the weather worsens in Brazil. Bloomberg writes about it, UNN reports.
Details
It is noted that futures for arabica and robusta coffee have risen as declining stocks and persistent dry weather in Brazil, the world's largest producer, threaten global supply.
The most active contract for robusta rose by 3.2% to $4,861 per ton. Stocks of certified Arabica this week decreased by more than 34 thousand bags, and robusta stocks continue to decline.
Bloomberg adds that unfavorable weather conditions in Brazil and lower production forecasts in Vietnam are also contributing to this.
Addendum
At the moment, traders are watching Brazil, as temperatures are expected to be above average in some coffee-growing areas until September 12. This could affect next year's yields, as crops have already been stressed by heat and drought.
Although weather conditions have improved in Vietnam, the top producer of robusta, concerns about a decline in production remain due to the drought earlier this year.
Soaring coffee prices are already having an impact - FT01.04.24, 17:32