Stock prices for Arabica coffee rose to their highest since 2014. Prices are rising amid an abnormal frost in Brazil, the world’s largest coffee supplier, following a severe drought. Due to extreme weather in the country, about 11% of crops were affected, writes WSJ.
In Brazil, a bag of coffee weighing 60 kg, which cost 400 reais in December (about $ 77), rose in price to about 800 reais in July, and according to forecasts, it may soon rise to 1,000 reais.
Coffee maker and president of the coffee cooperative Jose Marcos Magallains told the WSJ that he now expects to lose two-thirds of the 2022 crop on his farm.
How transfers Reuters, last week, severe frosts that hit twice damaged most crops and a third cold front is expected in the coming days.
Low temperatures are especially detrimental to young coffee trees. Farmers will have to cut off damaged branches or replant their fields altogether, which will deprive them of their harvest in the following years.