WSJ: World coffee prices to rise amid crop failure in Brazil
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A poor crop of Arabica beans in Brazil, the world’s largest supplier, could push coffee prices up globally. One of the major Brazilian coffee cooperatives, Minasul, stated The Wall Street Journal (WSJ) that due to the effects of drought and frost, the company will receive half as many coffee beans from suppliers as expected.
“Coffee futures rose in 2021 and earlier this year, hitting a nearly 10-year high of $2.58 a pound in February,” the WSJ said. Last year, coffee futures rose above $2 a pound for the first time since 2014, which was then attributed to a sharp drop in temperatures in several Brazilian states.
Coffee broker Cazarini Trading Co, Thiago, told the WSJ that global coffee price appreciation could rise as estimates for the 2022 crop are being prepared. He did not specify when exactly the crop assessment activities are taking place in Brazil.
Last December, coffee futures hit $2.46, became record high since 2011. Even then, CNBC analysts noted that the coffee bean harvest in Brazil in 2022 could be “very sad” due to weather conditions.
About last year’s rise in price of coffee – in the material “Kommersant” “Between the ground and the anvil”.
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