MercoPress. South Atlantic News Agency
Coffee prices soar as Brazil's crop plummets because of adverse weather
Don't be surprised at the higher prices for an 'expresso' Because of adverse climate conditions Brazil’s Arabica coffee prices have recently surged 94%, to 2.144 dollars for half a kilogram ($2.30) on the New York futures market.
The harvest in Brazil, which accounts for more than a third of world output, will drop more than expected in the 2014-2015 season to 49 million bags “with the risk towards a lower number,” Marex Spectron said in a report last week — down from a January forecast of 55 million and last year’s crop of 53.3 million.
That decline will leave global production 7.1 million bags below demand, Marex Spectron said. That would be the biggest deficit since the 2009-2010 season, US Department of Agriculture data show.
The price spike is a result of bad weather in Brazil. First, growers were hit with a sustained drought during the growing season brought on by El Niño tropical weather.
Then, at harvest time, flooding hampered collection of the few remaining crops.
“Nobody is absolutely sure about how big the deficit will be this year,” said Rodrigo Costa, of Newedge Group. “The supply outlook definitely looks tighter than it seemed three months ago. The situation has deteriorated.”
Coffee for July delivery jumped 15.25 cents, or 8.1%, to $2.04 per pound
Top Comments
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Read all commentsThe Brazil controls the prices of nearly all agricultural and livestock products on the planet Earth.
Apr 29th, 2014 - 12:38 am 0The next step is to bring to South America the major commodity exchanges too.
The Western speculators are vile and wish to dominate markets producing very little or nothing.
We, South Americans, should be able to change that environment hostile to our interests.
We, South Americans, are the largest agricultural producers in the world and Westerners speculate about the fruit of our labor.
This is wrong and we need to fight!
Idiots like you love wikipedia so check it out, Braxil made a couple of listings........and not the top:
Apr 29th, 2014 - 01:29 am 0http://en.wikipedia.org/wiki/List_of_largest_producing_countries_of_agricultural_commodities
Or try this brasshole:
http://en.wikipedia.org/wiki/List_of_largest_producing_countries_of_agricultural_commodities
You're either ignorant, stupid along with an outright moron to think a world commodity trading center would ever be put in a undeveloped country. You fucked up the chance with the World Cup and the OCO is more than concerned about you fucking up the Olympics.
“In an interview with The Associated Press, Francesco Ricci Bitti said Rio's troubled preparations are reaching a stage where some sports may need to consider ”Plan B“ options for their venues.”
http://en.wikipedia.org/wiki/List_of_largest_producing_countries_of_agricultural_commodities
You can't play a game and you want to trade commodities?
“The Western speculators are vile and wish to dominate markets producing very little or nothing.”
Apr 29th, 2014 - 04:44 am 0Seriously? Agriculturally, the US produces very little, or nothing?
You don't say very intelligent things sometimes. You are why commodities aren't traded in Brazil.
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