Coffee Futures Surge as Brazil Heat Raises Fears of Shortage,
The most-active futures contract settled 4% higher in New York at $2.5945 per pound, the highest settlement price since 2011.
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Arabica coffee futures surged in New York as persistent dryness in top-supplier Brazil elevates fears of a crop failure.
The most-active futures contract settled 4% higher in New York at $2.5945 per pound, the highest settlement price since 2011.
Temperatures will be high in most of the coffee-producing areas through the weekend, Climatempo meteorologist Dayane Figueiredo wrote in a Friday report.
That’s bringing concern of damages to trees that are in their flowering period, a crucial moment that will determine how many beans will be harvested next year.
In addition, in parts of the top coffee-growing state of Minas Gerais, crops are being impacted by soot from fires, Climatempo said.
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While there haven’t been reports of coffee trees hurt in wildfires, the proximity of those crops potentially could harm buds.
“Those are new and unknown elements,” said Carlos Santana Jr., a Brazil-based commercial director at trader Ecom Group.
Source:norvanreports.com
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