The frost will add to the stress on crops caused by the dry weather in Brazil, which is already threatening next year’s harvest.
Arabica prices jumped in New York after a light frost in parts of Brazil raised concerns about upcoming supply. Therefore, traders are assessing another sharp cold snap, which is expected in the American country this week. Bloomberg wrote this on Monday, August 12.
The most active contract for the supply of coffee rose in price by 7%, the most since July 9.
Cold weather will hit the southern states of Rio Grande do Sul, Santa Catarina and Parana again this week. While this does not pose a major risk to coffee-growing regions, market volatility has traders closely monitoring the weather to gauge risks and potential losses.
The frost will add to the stress on crops caused by the dry weather in Brazil, which is already threatening next year’s harvest. Any rain before frost can trigger early blooms, which may not survive unless rain follows.
It was previously reported that world cocoa prices have updated their historical record. Cocoa futures in New York hit a new all-time high. The most active contract rose 5% to $11,578 per metric ton in early trading on Friday, April 19.
And at the end of April, the prices of cocoa beans dropped by 26% in two days.
Source: korrespondent
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